INDEX UPDATE
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The overseas markets were mixed with JAPAN down, and EUROPE slightly up/flat. The short-term technicals for the overseas market are in the upper mid-range, and HONG KONG a CLASS SELL. 1 or 2 more up days in the overseas markets will put them in the overbought/CLASS SELL territory. In other words, on a very short-term basis (1-5 days), they could continue up some more but the downside is greater than the upside potential.
Earlier the futures were up around 8, but now up 2.80; therefore the futures are not showing a huge amount of strength at this time.
From the futures now, it appears that we may get a flat day. If that turns out to be true then that would be a signal that we are topping off(SPINNING TOP/DOJI DAY). Flatness implies indecision, and when that occurs after a nice run, such normally implies the top has been set.
Still looking for some intraday upside, then the reversal to the downside to start tomorrow or as early as this afternoon. It appears so far that yesterdays interday highs may be the top; nevertheless as long as the top of this short-term upswing does not exceed 8182(8232), then that would produce a LOWER HIGH, and imply forthcoming LOWER LOWS, since LOWER LOWs were already established at the begininning of this upswing. At this time, I am expecting a least a test of the recent lows - then watch to see if it breaks to the downside or holds.
I am not looking for the BIG KAHUNA, but if it occurs, so be it. I will simply be doing the same old thing, and that is to watch the market internals, support lines breaking or holding, and other technical signs.
seeya |
