INDEX UPDATE
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OVERBOUGHT
For the candlestick followers, we go DOJI, SPINNING TOPS, HARAMI CROSS, INVERTED HAMMERS(plenty) across the board.
Most of the indexes are in the over bought range and are CLASS 2 SELLS, not to many CLASS 1's, so there is a slim chance that the market can go up more, but not much for this specific short-term cycle. If tomorrow is up, it should be that last day up on a intraday basis. There is a fair to good chance of a afternoon selloff, if it does not start earlier.
I am playing the DJX and XAL, I may just also the BKX. The XAL had a HARAMI CROSS which is a strong reversal signal. That is a big WHITE day followed by a DOJI, which is within the body of the White day. It isnt exactly, but real close - good enough for me. If the XAL does not move up more on a closing basis, then it would have completed the TECHNICAL DELAYED RISE(double top). Not that I like to target price, but feel the 670-680 range could be likely. Now if the price of CRUDE continues up and Saddam goes nuts, well that is news and it could intensify the drop.
If I have the opportunity, I will be adding to my XAL position I started today.
I am not expecting a huge pullback, just a normal technical correction which should bring most of the indexes back to or near the middle Bollinger band. Of course any trend can intensify with news.
The BKX is not a CLASS 2 or CLASS 1 SELL, and just entered the overbought region, so it technically has more upside room than the rest. However, per my GUITAR it was one of the weakest indexes.
Good luck all, |
