***** TA Update (intra-day) *****
The markets steadily rallied after the opening, and have held almost all of the gains during the mid-day countertrend dips thus far.
The market internals are quite positive, implying a firm close could occur. The Nasdaq a/d is 17/10, with u/d vol 6/1, on over 720M shares, which projects to only about 1.4-1.6B shares, which is not indicative of a rally that will last very long.
The NYSE a/d is stronger at 23/8, with u/d vol 4/1, on over 620M shares.
The Dow is nearing resistance at 8770 after having taken out 8650 resistance, and a close above 8770 might indicate an attempt to reach 9000 or 9054/9077 within a week.
The Nasdaq is nearing 1420 resistance, and also may have a firm close today.
That is the good news, but the bad news is that the indicators are overbought now on a short term basis and we are nearing resistance levels that might turn back this market unless volume picks up, tomorrow, in particular.
The market can reverse back down at any time now, and it is up to the institutions to tell us by their block trading, light or heavy.
The excuse for this rally is the stimulus package but the market will soon say the reason for a decline (while its occurring) will be worries about war and the weak outlook for earnings and the economy, as the media and analysts are simple-minded in trying to explain every movement of the market. The reality is that the technicals and fundamentals are negative and that the market has resets from time to time but the overall long term and intermediate term trends will be reinstated to the downside.
The gold stocks rallied early this morning as spot gold in London rallied before our opening but has now stalled, perhaps indicating a double top at the 355-356 level. We shall see after the close. |
