By Zak Mir.
After the September Payrolls: FTSE 100, Dow, S&P500
FTSE 100:
- October bear trap from below rising 200 day moving average echoed similar brief trap in June.
- Initial consolidation expected at and above the former September 6,659 peak.
- Best case scenario for end of 2013 currently a top of 2013 price channel target of 7,200.
- Only below 6,600 on a weekly close a threat to the optimism.
Dow:
- Near perfect 200 day moving average rebound for October adding to the August bear trap rebound.
- Similar progress expected for October / November to April / May ascent.
- “Minimum” upside seen at May resistance line projection of 15,800
- Best case scenario for year end 2013 as high as 17,500.
- Only below 50 day moving average at 15,163 currently threatening bull argument.
S&P:
- Leading the Dow higher having broken equivalent May resistance line.
- Likely consolidation at and above former August 1,729 peak.
- The longer the index holds former 2013 the greater the chance of a best case scenario target of 1,900 by the end of the year.