INDEX UPDATE
----------------
Right now I have my short-term technicals on the DOW at 15, which is a CLASS 2 BUY, but the NAZ reading is at 76, which is just slightly under OVERBOUGHT. The SPX and OEX are at 40 and 38 respectively, which is in the mid-range.
Thats a big divergence. I normally like to enter a position when the major indexes are somewhat in line, not when they have such a large divergence.
My feeling is that the DOW will head up as soon as tomorrow, but with the divergences, such could minimize the upside.
On the other hand, if the NAZ sells off, since it does have alot of downside, it could push the weaker DOW down further.
I would feel more comfortable if the NAZ was below 50, more in line with the SPX and OEX before going long on the DOW.
The DOW, at 15, still has a little more downside in it but not alot. Keep in mind that there is a major support at 8300 range and we got as low as 8346 today. Keep in mind that this is already 300 points off of the intraday highs of last week at 8650.
seeya |
