Markets next week.

Here are two different projections for the next few eeks, by two fairly accomplished U.S. traders. Both have good track records of identifying turning points. The levels discussed are for the S&P500, the U.S. Index which closed at 1091 on Friday.

Trader A
Right now I think Monday/Tuesday high
1100-1105
Then 1033
970
840
Trader B
Summer Rally?
On 6/7 I projected the DOW low to be 9864 and the S&P low to be 1045 before a rally begins. The actual lows were 9757 and 1042 on 6/8. Now after two days of rally the question becomes is this a longer term rally or just a minor correction in the bear. The prices to note are 10360 and 1108. If we close above those on a weekly basis, the longer term rally should be in place.

My Notes:
The Indian markets are likely to follow the U.S. markets. We are competely coupled with the rest of the world. We have a trading range between 4970 – 5150. Current action in the Nifty suggests that 5150 could be taken out. If there is a breakout it should be accompanied by similar breakouts in world indices. The levels for the S&P are useful for us, since this will tell us if the world markets are breaking out or not.

For the short term, we can expect a sideways market for the next 2-3 days or even a mild dip. A brief rally to 5150 is possible, but that is about all. This is for the next 2-3 days only.