| Index | Strat | Risk | Target |
| DJIA | Flat | ||
| NASDAQ | Flat | ||
| S&P500 | Flat |
The decline from the October 2007 high is in 5 waves, therefore a multi-month countertrend 3 wave advance is underway. Fibonacci resistance does not begin until 8736. Near term structure is not clear, which is not a surprise given that the advance is a correction. The rally from 6470 could unfold as a complex correction, such as a series of zigzags. If things clear up, then there may be a buying opportunity.
The Dow has broken above resistance at 8,089 the 61.8% Fibo level of the 9,088 – 647 decline and if bullish momentum continues we could see of the January 6th high of 9,088. However, the broader index hasn’t cleared the level yet and a retracement is still a possibility with 7,750 as possible support.
The S&P count is the same as the Dow count. A corrective advance is expected and initial resistance from Fibonacci begins at 926. Near term structure is not clear enough to warrant a trade.
The S&P 500 continues its upward trajectory and is looking to test resistance at 875-the February 9th high. If resistance holds then a retrace back to 840 is possible where we see the 61.8% Fibo level and former congestion. However, a clear break above the leaves psychological resistance at 900 as the next barrier.
The Nasdaq is in the same position as the other US indexes. The rally from the low (1264) is expected to eventually reach Fibonacci resistance, which does not begin until 1727.
The Nasdaq broke above the January 6th high of 1,666 and set a new yearly high, leaving the November 8th high is the next major resistance level 1,785. However, the tech laden index has completely cleared resistance and a retrace is possible.
