Transcendental Market Truths (Fragments):
The Market:
The market is basically moving sideways now. This may be due to changing political forces in Washington, which will make passing new stimulus programs less likely, or perhaps this is just a mature uptrend that's running into substantial overhead resistance. Indications are that the uptrend is still in effect, though
New 52-week highs are still running well over two hundred on the NYSE while new lows are still in the single digits. Until the new lows start moving closer to triple digits, it's very unlikely that any short term downtrend will be maintained in the broad market.
The two technology leading sectors, SOX and NDX, are underperforming SPX, which is an early warning of weakness. Interestingly, the Bank Sector BKX is relatively strong.
Dow Industrials:
Each dip seems to give traders another excuse to buy and the rising money flow line means that the overhead measured move target (10793.5996) is still in the market's sights.
Overall, though, this sideways trend should continue at least into mid-April before a much larger dip, followed by a final rally into the August timeframe. After that, the market will most likely begin a serious decline - stronger than the 2008 decline, in fact. |
