Stock Market Forecast 5-7-12

Market Forecast 05-07-12

I commence with my gratitude to The Creator

On May 2, 2012 early morning, right after when DJI had logged in the highest prices in the 4 years history of the stock markets, I forewarned you and said, " I am expecting another correction soon, even as soon as 05/02".  I supported my argument and said that, "  Dow Jones Industrials have claimed the highest price in the 4 years on May 01. However, other indices showed weakness and thus closed much lower than price set on 04/02 highs. For example S&P-500 even made an inverted hammer, which after confirmation could result into more selling thereafter."

I even posted this attached chart, showing the down target of 1,369 for SPX, which has already been achieved..

Stock markets experienced a gap, on Monday. This gap was NOT an ordinary gap. It was a break away gap.  It is a Precursor of a new trend, which is downward. Breakaway gap candlestick was a Marubuzu, which reflects that markets is really weak and sellers have taken over the markets. By looking at the NASDAQ chart, it shows the underlying weakness of the stock markets It is the index,which lead the recent 3 1/2 months rally starting from mid-December 2011. First support for NASDAQ lies at 2,875 area, then below that support is at 2,812, and 2,760

US Stock Markets and ADP Data Correlation

I commence with my gratitude to The Creator

Stock Market and ADP data

Sometimes, during the so much chatter and noise, it is hard to filter out, what does a certain news or data report mean. Therefore, it is prudent to look at the full and better view of the picture, by taking a step back.

Let's take an example of ADP payroll data, which gives the information about the number of jobs added in the private sector. I believe that is an important number, as it reflects upon the fundamentals of the core of the economy, i.e., how the driving force of the economy is doing. If we look at the chart enclosed, ADP data has been a pre-cursor to the future turns in the stock markets.

Recent drop in the number of jobs created in the private sector has dropped significantly. That is foretelling us something...!

ADP data is has been forming or has already formed a top. What is next...? serious correction..? Let's see what happens!! See the highlighted areas of the chart..!

Stock Markets Update 05-02-12

I commence with my gratitude to The Creator

Stock Market Forecast 5-2-12

I received complaint that last post was not published in time.. That was quite possible, as I have created a draft to be posted before I went on the Spiritual Retreat, and left it upon someone to publish it in time. That is why it is quite possible that it was published in time, although, it was time stamped before the date of publishing.

Let's have a look at the Markets found some smaller resistance on 04/30 and on 05/01, went higher then previous days' resistance. Nevertheless, Markets' Indices are showing an interesting tale.

Stock Market Forecast 5-2-12
NASDAQ chart

Dow Jones Industrials have claimed the highest price in the 4 years on May 01. However, other indices showed weakness and thus closed much lower than price set on 04/02 highs. For example S&P-500 even made an inverted hammer, which after confirmation would result into more selling thereafter. It is all happening within the time frame of time cycle for CIT, reversal. Therefore, markets could fail here. S&P may come down to test the 1,380 or even 1,369 level and NASDAQ chart is even weaker than all other indices. NASAQ 100 could test the 2.640-2,650 area once again. Remember this is the one, which lead the market to these high levels. Markets leaders like AAPL, GOOG, BIDU, PCLN are NOT showing the strength as shown in DJI, rather their weakness is reflected into the S&P and NASDAQ charts.

Thus, I am expecting another correction soon, even as soon as 05/02