FEB 1 INDEX UPDATE
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Short-term technical readings:
DOW - CLASS 1 SELL SIGNAL(closing basis)
SPX - upper midrange approaching overbought region
OEX - upper midrange approaching overbought region
NAZ - midrange
NDX - midrange
VIX - 23.99, CLASS 2 BUY SIGNAL(inverse to market)
PUT:CALL RATIO -
Per my short-term technicals the over market is in the upper midrange, and if it continues up I would get more CLASS 1 SELL signals in 1-3 days.
The NAZ NEW HIGHs/LOWs deteriorated only slightly, so no firm conclusion can be made, at least not yet.
Today was possibly the 2nd DAY of a MINOR 3-DAY PATTERN in the NAZ/NDX. This type of 3-DAY PATTERN is no where as reliable as one that is immediately after a CLASS 1 signal, but will mention it anyway. DAY-1 was down and DAY-2(today) was flat, so if this minor 3-DAY PATTERN works then the NAZ/NDX could be down similar to DAY-1. Again, Im not making alot out of it since it is not as reliable, just a slight/fair possibility.
Towards the end of the day, sector rotation was showing up again as the NAZ lagged the DOW significantly. However the DOW is now in CLASS 1 SELL territory with the WINDOW until MON's highs. If the sector rotation continues favoring the DOW, we could see the beginning of a DOW breakout at the expense of the NAZ; however Im more inclined that the DOW should start pulling back. If/as the DOW sells off, will the NAZ, which is only in the midrange, also sell off or will be see sector rotation from the DOW back into the NAZ? Heck if I know.
So Im expecting the DOW to start to pullback some on MON/TUE, but what the NAZ will do I dont know.
Paul has mentioned a BULLISH FLAG in the NAZ, and I mentioned a RECTANGLE in the NAZ/NDX. Both possible patterns are still intact. Regardless if it is a BULL FLAG or RECTANGLE, both formations are hinting of an upside move. |
