The weekly closed last week on a downtrend for a fourth week. The market had another volatile week with a range of 178 points just below the previous week's 200 point range. iQuant predicted weakness and a target at 5092 and it is exactly what happened. Our downside targets from 31 October of 5220 and 5125 have been exceeded and we look to this weeks target for the next downside targets, December futures expire 19th December and volumes continue to increase as funds are rolled to March 2014. We continue to expect weakness and the weekly chart shows support down to 4907 and a break of this level will see the market oversold for a third week in a row and may lead to a flash crash. The weekly downside target continues to fall with a test of 5000 expected. We continue to expect new short term lows to be set on the way to our weekly target at 4907? down from 5092 last week.
The daily short term shows a stop for Monday at 5137 with the weekly stop at 5084. Volumes are increasing as sellers are now increasing and looking for support. 5092, 5125, 5157 and 5210 are the key resistances for next week; A close above 5084 at the end of the week will reverse the four week long downtrend. iQuant indicates short positions with a stop at 5084. The weekly chart shows support at last weeks lows near 5037 and we expect the market to retest the lows and set new lows for the Quarter.