MAY 3 INDEX UPDATE
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Short-term technical readings:
DOW - borderline/pending CLASS 1 SELL, DOJI/imperfect BEARISH HARAMI
SPX - borderline/pending CLASS 1 SELL, DOJI/imperfect SHOOTING STAR
OEX - borderline/pending CLASS 1 SELL,
NAZ - CLASS 2 SELL, DOJI/SHOOTING STAR
NDX - CLASS 2 SELL, DOJI/SHOOTING STAR
Per my short-term technicals the overall market is in CLASS SELL territory. However, in light of the numerous HIGHER HIGHS set today/recently, which is quite bullish, I am suspecting that the forthcoming pullback may only be normal/small in size and possibly a buying opportunity. HIGHER HIGHs were set in the following indices:
NAZ
BTK
RUT
IIX
DOT
NWX
I am no expert on HEAD & SHOULDERs(INVERTED) formations, nor do I consider them high probability plays, nevertheless they should be mentioned. The following are the INVERTED HEAD & SHOULDERs I have noticed:
NDX
LEFT SHOULDER - end-FEB/early MAR around 1840
HEAD - APRIL 4 at 1348
RIGHT SHOULDER - late APRIL around 1730
NECKLINE - around 2000
TARGET MEASUREMENT - around 2600
SPX
LEFT SHOULDER - early MAR around 1220
DOUBLE HEAD - 3/22 & 4/4 around 1080 - 1090
RIGHT SHOULDER - late APR around 1210
NECKLINE - around 1260
TARGET MEASUREMENT - around 1420
DOW
RIGHT SHOULDER - late FEB/early MAR around 10300
DOUBLE HEAD - 3/22 & 4/4 around 9100 and 9300
RIGHT SHOULDER - late APR around 10400
NECKLINE - 10750
TARGET MEASUREMENT - 12200
Similar INVERTED HEAD & SHOULDERs for the OEX and NAZ. Some could also argue that the SOX/DOT/IIX/BKX may also have INVERTED HEAD & SHOULDERs.
What is most interesting is the TARGET MEASUREMENT on the DOW which is implying NEW HIGHs.
Again, in no way will I say that the probability is high for the above INVERTED HEAD & SHOULDERs to reach their TARGET MEASUREMENTs. Nevertherless I would not totally ignore the possibility of such occuring, especially in light of the numerous possible INVERTED HEAD & SHOULDERs.
I also want to remind that the RUT recently formed 3-WHITE CROWs on both the DAILY and WEEKLY charts, which is significantly bullish.
As for my personal mutual fund account, I closed a few UOPIX(long-NDX) positions but am still slightly net long. I did not add any new short postions. As for my trading account I am still long the gold stock and biotech positions. If/when my short-term technicals enter the mid-range, I will start to add long positions gradually in light of the recent bullishness. |
