INDEX UPDATE
------------------------------
The DOW and many of the DOW INDEXES have been negative for 4 days straight, which is the first time since this rally began in JAN.
The DOW & SPX have just entered the OVERSOLD region, and the NAZ is now in the MID-RANGE, per my short-term technicals.
As I have stated in the past - my short-term technicals are more based on time than they are on price.
At this juncture of the technicals, the market can easily reverse to the upside. I realise that many will say, especially those who are playing puts, that there should be a bigger pullback in price.
The best thing that could happen now is for the market to drop more substantially today, which then will be a buying opportunity for a long position, but don't expect huge gains above the recent highs. We should at least get back to or near those highs and even exceed it slightly prior to MID-APRIL, but not much more.
Again, this bull-trend and rally is still intack, but we are definitely slowing down and the top before a stronger pullback is close. After mid-april the earnings and interest rates will determine further direction. If we still continue up, the the TOP will occur in MAY.
It strongly appears that the we are developing a ROUNDING TOP CHART formation. With this type of pattern the topping process takes a bit of time.
If there is a strong dip intraday, I will be going long.
Watch those interest rates, they are getting very close to 6.00%. If interest rates do get to 6.15% by mid-april as the trend channel indicates, it will give added fuel for a strong decline. It will also indicate that the rates will continue up further since it would have set another higher high at 6.15%.
Seeya |
