Daily charts for S&P
Daily charts for NASDAQ
On Friday, Dow and S&P did another ice hole failure for the 200 day moving average and broke the lower MOBO bands. Only NASDAQ is still above its lower MOBO bands. However NASDAQ is below the 200 day moving average. This shows momentum for a continued downtrend. In addition, Dow broke the psychologically important 10,000 level. If we do not rally above this level over the next few days, this will put a serious damper on bullish sentiment.
On Monday, I believe the markets should rally intraday to test resistance at the lower MOBO bands. This would be coincidentally at 10,000 for Dow, 1,070 for S&P. Should the indexes fail to rally and stay above these levels, we should be seeing the market drop to around 9,500 for Dow, 1,000 for S&P and 2,000 for NASDAQ.
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