Market Outlook: A Pivotal Week for Global Equities
“Markets continued their strong performance this week. Thanks to Chinese stimulus, Asian markets significantly outpaced other global markets. However, as I predicted on Wednesday, this global market rally is likely nearing its end, possibly around October 1st.”
So “Let’s get straight to the technical points for the NIFTY and S&P.”
NIFTY
For NIFTY, October 1st is strategically important because it’s a price and time squaring date. Coincidentally, October 3rd is another major price and time squaring date for NIFTY from two significant lows. The price at which this squaring would take place is expected to be 26,000 on spot. Therefore, expect this level to break during the next week. Once it breaks, anticipate a sharp decline towards 25,733 and 25,380 in the immediate future. On the upside, the major Gann angle resistance is at 26,350, which is a 180-degree geometrical angle from the August 5th low. This level would act as resistance for the next 10 days.
S&P
“A significant turn in the S&P 500 is highly anticipated next week. Long-term resistance remains between 5,775 and 5,866. If the index continues to trade below this resistance level, a sharp decline towards 5,400 is possible. We’ll see how things unfold starting October 1st.”
Additionally, next Wednesday would mark the end of an eclipse season that actually began with a lunar eclipse on September 18th.
Generally, markets have a tendency to reach the exact point where they were after the start of an eclipse season.
So, in the current case, markets should return to their levels before September 18th. This means NIFTY should get back to 25,286 and S&P should return to 5,610 in the next few days.
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