INDEX UPDATE
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Most of the DOW indexes are now CLASS 1 SELLS and the HiTech indexes started their reversal to the downside today. Per my short-term technicals tomorrow should be a down day. Lets see if the decline will be a bit larger than in the past, or will it still be buy on the dip mentality.
I checked the HiTECH indexes thoroughly and many of the main components and technically they do not look strong. Many lower highs and lower lows, along with other negative technical signals.
I am not saying that the dip this week will be a big one, but the technicals on the HiTECHS are definitely showing weaknes. For the interim, not saying that the market can not go up later, but it truly appears that we are topping out in the HiTECHS, and that this super-rally should be coming to an interim end.
I am getting more and more signals that a bigger pullback could start next week. The question is whether the DOW is strong enough to hold the NAZ up.
The charts on INTC and MOT and many others look bad for now. Many of them are indicating the possibility of setting new 52 week lows. Even the chart on DELL is starting to look weak, no where as bad as MOT or even INTC, but DELL did just set a minor lower low.
Besides the HiTECHs the OSX is right on the borderline of breaking to the downside, if it does not hold here.
Technical weaknesses are increasing, mainly in the HiTECHs. It also appears that the this rally is strongly motivated by interest rates, so if the rates increase during this interim, that will assist in pulling back the market more.
Seeya |
