After the agreement in the US budget dispute, the stock markets showed themselves at their best again. Supported by the hope for continuous cheap money from the Federal Reserve, the leading indexes newly took up the track towards the all-time highs.
Well, for our GUNNER24 Traders it’s not a real surprise. Last Sunday I gave you this tangible prognosis in the GUNNER24 Forecasts of 10/13:
First comes 1711, then 1730 and the 1750. By no means, I expected that by today the first two uptargets would have been worked-off being the 1750 truly but a blink away from the weekly close of 1744.50. The up-energy of the markets newly increased. Thus, the uptrend has started its year-end rally. The markets are going to roar-up, probably through January 2014:
The radiance of the last up candle is considerable. In one go, the weekly 1711 and the monthly 1730 horizontal resistances were taken. After overcoming these two resistances the next higher important weekly resistance will HAVE TO be targeted since this one is now representing the strongest weekly Gann Magnet above the actual price. At 1750 index points is where this Gann Magnet is situated.
After reaching the 1750 points, a new consolidation at the highs or a smaller correction will have to be expected. The 1750 is likely to be reached either on Monday or on Tuesday. My target for the smaller correction is 1708 points. So the rebound from the 1750 weekly horizontal resistance is to re-test the actually very strong 1711 horizontal support in the weekly time frame.
Above, the comment on the weekly 5 Candle GUNNER24 Up says that we should expect the next important highs to happen between 1750 and 1758 before this next important high is corrected at the weekly resistance. The 1758 is an important Gann Magnet in the actual daily 21 Candle GUNNER24 Up Setup. The 1758 are at the lower line of the 2nd double arc, in fact for next Thursday:
At the latest at the lower line of the 2nd, the bounce from the weekly top shall start off. But as early as on Monday, the topping process will begin by reaching the 1751. This represents a combined daily and weekly resistance. In the daily time frame a Resistance Gann Angle passes there that several times in the recent past has played a part (orange circles).
Since this Resistance Gann Angle was finally broken downwards by the last test at the end of September, it will be able and likely to represent a hard-to-crack resistance on daily base at the now expected attempt. Technically it should not be in a position to be taken upwards on daily closing base. But if so, such a performance would indicate another daily buy signal. At best, during the 4-5 trading days the market should be able to persist narrowly beneath or at the Resistance Angle.
So, for next Thursday the 1758 will be at the lower line of the 2nd. That’s where technically the correction would have to start that should lead to a test of the 1708 – intraday perhaps closely below… 1704-1702… Till about 11/10/2013 the 1708 will be supposed to be worked off. Subsequently and thenceforth the resistance of the 2nd would newly have to be tackled and subsequently be broken upwards.
But: If as early as next week a close above 1750 happens, it will be likely to end up just with a "consolidation at the highs" in the daily time frame. A weekly close above 1750 would be the next powerful buy signal on weekly base. In that case, any downwards reaction to the 1750 would really mean but a brief breather in the trend.
The most likely consolidation target in this case would only be the 1732-1725 being the surroundings of the still important and valid monthly horizontal resistance (this one won’t finally mutate to the monthly support before October 2013 closes above 1735…).
An unambiguous weekly close above 1750, hence about 1754 and above will activate the next higher important weekly resistance above the 1750 mark. This is a matter of the 1820!! 70 points above the 1750 it is. If the 1750 on weekly base falls within the next 3 weeks, technically the 1820 will be likely to be reached till the year-end 2013 without any big trouble. So, at the moment the 1820 is offering itself as to be the ideal year-high 2013! Hence, the stock investments keep on being safe and extremely profitable!
This is again and for the umpteenth time confirmed also by the leader of the stock markets we track. The NASDAQ-100 newly generated a powerful buy signal on weekly base. By the Friday close we bought the NASDAQ-100 on weekly base with target 3467:
It was on 10/06 when I last, I analyzed for you the weekly 13 candle up in the free GUNNER24 Forecasts. Then I expected the NASDAQ-100 to consolidate down to 3160 points for 8-15 days before the 5th double arc resistance would be taken in trend direction.
The consolidation period was "only 3 days" = a sign of a brutally strong uptrend. But on 10/09 it went a little lower on daily closing base (3142.54), intraday even down to 3117 index points. From the lows of 10/09 the market started unequaled fireworks that culminated now in a so-called Triple Buy Candle, a powerful, fresh new weekly buy signal.
In one go, last week broke…
…firstly: The resistance of the 5th double arc clearly upwards. Now, with a probability of more than a 75% the next higher important weekly resistance in trend direction will be reached = the center of the just passed square at 3467.
…secondly: The long-lasting weekly Resistance Angle that represented strong resistance in the whole year 2013. In the chart above, this angle is sketched now as a "Support Angle". A test of this support angle during the next 10 trading days has almost a 100% to happen…
…thirdly: The important horizontal resistance at 3262 is now the first weekly support. But the very strongest weekly support is now the 3160! There, really every deeper correction on daily base should come to its end before the finally activated weekly main uptarget of 3467 index points will be targeted. The 3467 or its surroundings respectively are offering themselves as the year-high 2013! After reaching the 3467 we’ll cover our long-position we went in on Friday MIT (market if touched). No SL.
Announcement: From the beginning of next week I’ll be in the USA on a training and further education tour. That is why the next issue of the free GUNNER24 Forecasts won’t be issued before 11/03.