INDEX UPDATE
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The futures are up and the the overseas markets are mostly positive. One exception is the Korean market which was down 4%, but the Malaysian market was up 11%. Therefore the open today should be up.
Of the 30 indexes I watch regularly, only 3 are not overbought which are the SOX,DDX,UTY. Even many of the foreign markets are also overbought on the short-term basis.
If the markets continue up strongly today, then it would be the first signal of a technical breakout to the upside. Technical breakouts are very hard to predict, since what it means is that the technicals indicators are of little use, except to say that the market is beyond the limits of the the technicals (per my system).
Since the market is overbought per my short-term technicals, would suggest to take caution to enter new positions at this time, but should wait for a dip to enter, if there is a dip. We may only have flatness. As I guideline I use, a plus or minus 30 points in the DOW is considered flatness, and a dip would be in the 50-100 point range.
As I have been typing, the futures are moving up.
As indicated in my previous posts, feel that the laggards will either be pulled up by the rest of the market or the laggards will move up while the the stronger portions move down or remain flat as the laggards attempt to catch up and narrow the divergence.
Happy trading. |
