INDEX UPDATE
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The short-term technicals are now indicating clearly overbought accross the board; therefore the probability of some type of pull-back is high.
My linear trading range is at 7500-7800, not to say that it will get to 7500 but that is the bottom in case of relatively bad news.
I had indicated earlier on the IDEAS thread that I have noticed some technical signals that there is a slighter chance that we may just continue up, but the probability of that happening is much less than the possibility of a small dip, or at least a flatness.
It is hard to determine the size of any trend, but there are hints that 7575 should hold if a dip occurs.
From a technical perspective, the technicals were more impressive yesterday when the market closed up 15 points than on Monday when the DOW was up 232. This market is showing alot of strength technically for a nice up-trend before the end of the year.
Such is not to say that we will not dip, but any dip will be relatively small and could happen as soon as tomorrow for the DOW. The dipping process already started for some of the other indexes (XOI,UTY,XMI,XCI).
I have also noted that INTC is approaching a CLASS 1 BUY, which should help the SOX, especially if the SOX pulls back a bit also.
Good night and happy trading |
