So far we have been treated to a bear trap rebound for leading equity indices. The issue is whether this is a shakeout ahead of new highs – such as we have seen on the S&P, or this is the beginning of the end of a five year QE fuelled rally?
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FTSE 100: 50 Day Moving Average Support
Bear trap rebound from below former February resistance at 6,708 / 50 day moving average at 6,706.
Above December price channel floor at 6,706 implies long awaited break to record territory.
Implied target towards 7,100 on a sustained 6,860 plus break
S&P: Target Towards 1,900 In Sight
Longer than expected time to clear 1,850 zone
Relatively swift break higher after Ukraine “bear trap”
Implied July price channel top target of 1,900 while above 1,850
Nasdaq Composite: Gap Through February Resistance
Significant unfilled gap through February 4,342 resistance this week
Support derived from 10 day moving average at 4,289
Above 10 day line suggests as high as August price channel top through 4,500 later this month.
Nikkei 225: Extended 200 Day Moving Average Support
Expectation of new leg to the upside in the wake of extended 200 day moving average zone support at 14,513
Cautious traders could wait on 50 day moving average break at 15,222
Upside seen towards May 2013 price channel top of 18,000 by end of April.
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