The bull is feeding on itself

 

For today I would like to give you a review and only a near-term forecast for the next 10 trading days or so for quite easy to read and trade markets at the moment, as I will skip the next Sunday edition of the free GUNNER24 Forecasts, because I will take a few days off to relax: S&P 500 Emini (ES #) – NASDAQ-100 Emini (NQ #) .


The major bull market continuation signal in the US stock markets, worked out and recognized in the last issue with the help of the ES #, has fully established itself since it was a bullish week for US equity indexes, with net weekly gains ranging from +5.8% (Transports) to +2.4% (S&P 500).


Dow Jones Industrial Average Index fired an always widely-recognized Golden Cross. Overall, the Dow Jones Industrial Average, the small and mid caps segments and the S&P 500 present now somewhat stronger than the Tech Indexes, which are already well ahead and have already reached new alltime-highs. This new found market breadth in the US is actually a very credible sign that the August main target of 3475 pts for the ES #, calculated in the June 7th issue (Just playing long ball, ma`am), could still be achieved.


Before that, however, there is still the important & due 3359 pts alltime-high resistance GUNNER24 Threshold that was identified in last Sunday's edition – click here on blue or on chart below to re-read this for sure very important US stock market forecast – as a mandatory uptarget for the August. Bingo time for ES # 3359 pts will be tomorrow/Monday at the very latest early-Tuesday. And then we have to observe carefully how the price reaction will be at the VERY FIRST BACKTEST of the alltime-high resistance arc ...

 

 

ES # on Friday settled at 3347.25 pts after a late rally into close that was hardly thought possible. So the market again settled at fresh rally highs and therefore is in killing striking distance to the lower line of 1st ATH resistance double arc within above monthly 32/33 Candle GUNNER24 Up Setup.


And I predict one with quite high effectiveness. The market will have to react quite negatively to the 3357-3363 August 2020 Big Bear range. This is what monthly arc resistances on alltime-high base usually do at very first backtests. They usually trigger a visible, tangible and often for the bulls very unpleasant downer.


My expectations for the week are: Bull Monday will test 3359 alltime-high resistance arc and perhaps has to dent the 3359 pts by small amount. In course of a then following „Turnaround Tuesday" an at least 40 pts sharp pullback/dip will be triggered. The after 3359 pts work off triggered daily downleg might run for 2, 3 to max. 4 trading days, then ES # will be turning up again for A) finally breaking 3359 pts to the upside, followed by B) a 3400 pts hit towards end of August 2020!

 

The then probably next best maybe even PERFECT long-entry into this ES # rally with obvious 3400 pts uptarget should be delivered by the next week NQ # bear extreme. The short-term path of which is incredibly concrete ahead of us.


NASDAQ-100 Emini (NQ #) view and near-term forecast


I've been in this business for so long now but I can't really remember a Tech Stock rally ever looking so healthy as it is a broad-based heavy-momentum run fuled by nearly any major important Tech Stock Leader and at the same time in the 2 most important sectors of the Tech World what are the semi`s and the software businesses.


We are actually able to observe countless powerful, cause quite sustainable looking buy signals in many Tech Places - regarding the GUNNER24 Method, but also regarding the pure chart technique.

 

 

At the left side of the weekly NQ # chart I have listed the FANGMAN stocks at current cycle state. In my opinion. FANGMAN's are still looking very strong and healthy, with partially some high activated GUNNER24 Uptargets in front.


AAPL stock 99% likely needs the round 500$ upmagnet resistance number work off till end of August (for this re-read „Apple`s stock split 4 for 1 checkmates bears & a NEXT huge S&P 500 Buy Signal!" forecast – or click here on blue). NVIDIA sniffs the 500$ also within weeks and Microsoft at least should print a 225$ towards end of August.


But that, however, as indicated by the profit-taking Friday, the US Tech Stocks are likely to correct a little further along with the S&P 500 etc.


And now things are getting exciting. The above at # 1 // 2020 Low anchorable classic 5 Fib number weekly GUNNER24 Up Setup of the NQ # signals in advance that a next week dip should normally test the 11000 to about 10980 or so.


This would backtest the now morphed BIG, TRIPLE Support formed:


1. By 11131.50 settlement finally on weekly closing base overcome lower line of 2nd double arc which was 2 times negative tested former alltime-high resistance rail.


2. By 11131.50 settlement finally on weekly closing base overcome round 11000 pts Gann number, therefore a relatively close natural backtest downmagnet support in the weekly chart.


3. The SINCE late-April determining Rally Angle support what is now already 8 times positively tested rally support on combined week close and week low base and which is held as steep as possible. Or also..., this unusual steep bull market support optically represents the uber-bullish momentum, existing for months now. Or also, BUYING PANIC = EXHAUSTION cycle running!


==> Actually NQ # chart above offers clearest-defined and above all likely most strongest future support magnet what IF getting tested in course of the next week FIRST should stop a pullback/dip cycle in the US stock markets. SECOND, IF getting tested till Friday should be used for long-entries in the other US equity indexes. THIRD, is likely to be the dominant support magnet that will force the US markets into late-August/early-September – likely very important & perhaps even Major 2020 – rally highs.


==> Check this fresh activated bull market uptarget above. NQ # by week close finally activated the upper line of 2nd double arc uptarget magnet resistance which runs at 11550 pts surroundings for the coming August trading weeks. The 11550 pts is a CRUICAL August uptarget for NQ #!

 

... and that shall suffice for today.


The next issue of the free GUNNER24 Forecasts is scheduled for August 23rd!


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Be prepared!

 

Eduard Altmann