Afternoon Index Numbers 08.14.13

            TopNotchTrading’s Index Numbers –

YESTERDAY DID SEE THESE TWO INDEXES REVERSE A REVERSAL.  THIS SCENARIO DID SEE THE NASDAQ TRADE TO NEW YEAR / CONTRACT HIGHS AND MAKES ME BELIEVE THE S&P WILL FOLLOW THAT LEAD IN THE NEAR TERM.  THE WHOLE IDEA OF REVERSING THAT MOVE YESTERDAY WAS SIGNALED WHEN BOTH FUTURES MORE OR LESS DOUBLE BOTTOMED FROM THE PREVIOUS DAYS LOW.  IT SIGNALS STRENGTH FOR THESE INDEXES MOVING FORWARD, BUT THIS BACK AND FORTH ACTION IS TAKING A TOLL.  THIS ACTION IS CAUSED BY A “STREAMLINING” EFFECT COMING FROM THE MOVING AVERAGES, WHICH IN TURN LEADS TO A RANGE BOUND TRADE.  THE MOST IMPORTANT PRICE THE S&P NEEDS TO SEE A MOVE ABOVE IS 1697.00.  THAT SHOULD BE THE TONIC THAT LEADS TO NEW ALL TIME HIGHS, BUT THE JURY IS STILL OUT TO SEE IF THIS FUTURE CAN FIND THAT LEVEL.  REMAINS TO BE SEEN.

FOR TODAY- I HAVEN’T SEEN THE S&P HAVE THIS TIGHT OF RANGE WITH ITS DIRECTIONAL PRICES IN SOME TIME, THE NASDAQ IS A LITTLE MORE SPREAD OUT, BUT TIGHT AS WELL.  TIGHTNESS IN PRICE ACTION USUALLY SIGNALS A MOVE, SO IT WILL BE INTERESTING TO SEE IF THE S&P DOES FIND ITS WAY HIGHER.  A MOVE ABOVE THE 1697.00 PRICE OF THE S&P TARGETS FIRST TESTS AT THE DAILY FIB OF 1700.20 AND 1702.50 PRICES.  OBJECTIVE IS 1710.30, BUT THAT MAYBE A LITTLE FAR FETCHED TO SEE TODAY.  LAST NIGHT IT HELD A CURRENT LOW OF 1685.25, WHICH WAS A TEST OF ITS LONG VALUE PRICE, WHICH IN TURN HELD THIS FUTURE IN CHECK.  THE WEEKEND SESSION LOW OF 1675.20 IS STILL THE MAIN TARGET OF INTEREST IF THE 1679.00 PRICE GOES OFFER.  THE NASDAQ LOOKS FOR AN EARLY TEST AT NEW HIGHS AT 3151.00.  OTHER LEVELS OF INTEREST UP TOP COME IN AT THE WEEKLY FIB OF 3159.75, FOLLOWED BY A SOLID FIB PRICE OF 3163.25.  THE OVERNIGHT HELD ITS DAILY PIVOT OF 3130.50 AT THIS TIME WITH A LOW OF 3131.25.  GOOD TRADING!!