INDEX UPDATE
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I am starting to hear that we are heading to the 9600+ area right from here for the short-term.
I do believe that we will move up over the next few days with the top of this short-term up cycle arriving WED/THU, but am very cautious with the 9600 target. I do believe that we could see the 9200-9300 range this week, but that should be it.
Am watching the interest rates carefully and at the open it rose to 5.989%. I am not saying that if we cross 6.00% slightly that the market will dump, but that nervousness will start to increase again and limit this short-term runup. Now if interest rates climbs to 6.1%+, then I feel this immediate rally will stall, if not reverse a bit.
Also I am carefully watching the divergences of some of the important indexes I mentioned previously (BKX,XAL,DRG,TRAN,PNX,ETC). If they continue to diverge that will also put limits on this immediate rally(1-5 days).
Also we have the possible beginnings of TRIANGLES, which I will be watching carefully to see if their integrity is maintained.
The futures are up strong (fair cash value at 2.70 + current 2.3 = 5), so we will be up nicely at the open.
Seeya
PS - believe today is the full moon ggggggggggggggg |
