Which Way Next For Markets?
Actionable bull and bear levels for the S&P, the Nasdaq, the Dow and the Russell.
DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.
First, A Little Background
We track the major indices in real time as a core part of our work here at Cestrian. We focus on the Nasdaq and the S&P, the Dow and the Russell 2000. As you know these are all tradable in either ETF form ( QQQ 0.00%↑ , SPY 0.00%↑ , DIA 0.00%↑ , IWM 0.00%↑ in their simplest forms) or in futures (NQ, ES, YM, RTY respectively). Before the market opens each day we take a cold look at the potential directions ahead in each index, in the smaller degree (short term) and larger degree (longer term).
We make these determinations using multiple inputs, including:
Smaller- and larger-degree Elliott Wave & Fibonacci extension / retracement measurements
The direction of travel of macro indicators such as the dollar index ( $DXY ) and US treasury note yields
Underlying single-stock analysis (eg. AAPL 0.00%↑ is critical to the Nasdaq and the S&P).
Options market insight.
In our real-time Growth Investor Pro service we use these levels as the background to trade long and short index ETFs - the system can be used for the simple ETFs above or for their levered cousins - your UPRO 0.00%↑ / $SPXU, TQQQ 0.00%↑ / SQQQ 0.00%↑ type instruments.
Going forward we will publish our levels in this, our Cestrian Market Insight newsletter, for our pay subscribers only. Today’s outlook is below.
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