Index Analysis and Projections

Updated: February 20th, 2012

Dow 30 (Dow Industrials)

Sentiment: Neutral

Price Target: None (Reached previous target of 12650)

Time Projection: None

Comments:  Everybody's talking about 13000 on the Dow, but I think we are overlooking 12900. No, that's not as round as 13K, and it doesn't really roll of the tongue, but that was last years high and it is still potential resistance. This week should see if it lives up to its potential.

S&P 500 Index

Sentiment: Neutral

Price Target: None (Reached previous target of 1320)

Time Projection: None

Comments: The S&P 500 isn't being discussed much anymore because the Dow is near the 13K mark, but this index is ready to test resistance as well. The index has been so strong for so long, watch for a wave of profit taking if there is a hint of weakness.

NASDAQ Composite Index

Sentiment: Bearish

Price Target: 2775
Time Projection: Early March

Comments: The NASDAQ has barely pierced the solid resistance level from last year, which could be a bullish sign. However, it is also extremely overbought and losing steam, which could be a bearish sign. We're thinking that this index leads the market downward - watch for a slight correction to the 50% downward cycle projection just below 2800. And remember where you heard it first!