Afternoon Index Numbers 8.13.13

TopNotchTrading’s Index Numbers –

HOW DOES ONE EXPLAIN THAT EARLY REVERSAL OF TREND OUT OF THE GATE YESTERDAY?  THAT’S A GOOD QUESTION AND ONE THAT HAS ME BEFUDDLED. THE DEFINITION OF THIS WORD IS- TO FUDDLE OR CONFUSE THE MIND, A PERSON, ETC.  WELL THAT PRETTY MUCH SUMS IT UP FOR ME ON HOW THESE FUTURES HAVE BEEN TRADING OF LATE AS THEY CONTINUE TO STAY PRETTY MUCH IN AN UPPER END TRADING RANGE.  I STILL LOOK FOR A CORRECTION, BUT IT APPEARS NEW YEAR / CONTRACT HIGHS ARE ON THE MIND, ESPECIALLY FOR THE NASDSAQ FUTURE.  FOR TODAY- BOTH HAVE EXTENDED ABOVE THEIR SETTLE AND SHORT VALUE PRICES LAST NIGHT WHICH IS A SIGNAL OF STRENGTH.  I WOULD LOOK FOR THOSE LEVELS TO BE FIRST TESTS OF SUPPORT IF A MOVE DOES GO SOUTH, FOLLOWED BY THE DAILY PIVOT PRICES FOR BOTH.

OVERALL THE DOWNSIDE # PRICES ARE THE KEY.  AS I WRITE, BOTH ARE WORKING NEAR THEIR PIVOTAL PRICES, SO I SUSPECT THEY COULD OPEN RIGHT AROUND THOSE LEVELS.  FIRST TEST FOR THE S&P WILL BE ITS UPSIDE # PRICE OF 1693.60 AND IF IT DOES EXTEND ABOVE THAT LEVEL, IT SHOULD TAKE DEAD AIM ON SEEKING A TEST OF THE 1699.20-1702.50 AREA.  THE NASDAQ, LIKE THE S&P, WILL LOOK TO TEST ITS UPSIDE # PRICE OF 3135.00.  THE UPSIDE DAILY FIB IS AT 3138.00 AND WITH AN OVERNIGHT HIGH OF 3137.50, TAB THE BOARD FOR CLUES IF IT HOLDS AS A DOUBLE TOP.  OTHER POINTS OF INTEREST COME IN AT 3143.00 AND 3150.00.  I’VE SEEN THIS SET UP BEFORE.

IT REMINDS ME OF THE “KARATE KID”.  WAX ON, WAX OFF.  IT MAKES ME WONDER IF A MOVE SOUTH WILL BE COMING OUT OF THE GATE.  BUSINESS INVENTORIES DUE OUT AT 9:00 A.M.  BACK WITH THE EARLY UPDATE TO CONFIRM OBJECTIVES MOVING FORWARD TODAY.  GOOD TRADING!!