INDEX UPDATE
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INTEREST RATES - they are on the verge of breaking the upward trend to the downside. The TYX closed yesterday at 5.843 and the previous valley under test is at 5.828%, so we are very close to breaking to the downside; HOWEVER it needs confirmation. If interest rates does continue down it will help keep this rally continue for the longer term. Watch these rates, could also turn around back to the upside very quickly also.
Per my short-term technicals, indicate that if we have 2-3 more consecutive days of incline, regardless if incline is small, the market will get back to severely overbought and CLASS SELL status. If the market was to pop a huge amount say 150-200 points it will become a CLASS SELL almost immediately. In light of such I am predicting that the interim top will arrive TUE/WED/THUR of next week, and we should have a technical pullback, with the first strong support at 8750.
Asia was down big again last night, and for the moment it does not appear to be effecting us yet, but most likely it will if it continues. I am getting the feeling of a worldwide technical correction, nothing huge, just a technical one. Also feel it already started with ASIA, and for the U.S. and EUROPE to start next week.
Just heard on CNBC that the money inflow into the funds was less than 1 BILLION, ending WED, as compared to 4 BILL the previous week. The inflow is declining but still positive. Dont forget the April 15 IRA deadline. Please correct me if I heard it incorrectly.
This is the time to start the process of protecting your long position by reducing long positions, selling covered calls, etc.
Seeya |
