Well, we got our weak bounces – now what?
October ended with a bang with the indexes rushing up to the weak bounce levels which, for the sake of an update from yesterday's (and last week and the week before's) predictions are:
- Dow 24,300 with a weak bounce at 24,800 and a strong bounce at 25,300
- S&P 2,640 with a weak bounce at 2,710 and a strong bounce at 2,780
- Nasdaq 6,870 with a weak bounce at 7,080 and a strong bounce at 7,230
- Russell 1,485 with a weak bounce at 1,530 and a strong bounce at 1,575
- NYSE 11,880 with a weak bounce at 12,150 and a strong bounce at 12,400
So the only change from yesterday, despite the "massive" rally, is that we have now turned the S&P and NYSE weak bounce lines green with /ES at 2,723 (still the low end of the bounce range) and the NYSE right in the middle this morning at 12,250. Until the Nasdaq and the Russell confirm their lines – it would be crazy to buy into this bounce and anything less than strong bounce lines is still a very dangerous market to go long into.