INDEX UPDATE
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Most of the short-term technical indicators are severely overbought, but short-term indicators can stay overbought for extended periods.
It is obvious that the momentum is strong, but tie that with this extended short-term overbought interim it is very hard to determine the top.
The next major peak is at 9041(9091) for the DOW.
There are huge number of short-term signals stating we are at/near a short-term top, and some sort of dip should occur. This dip could just take the form of flatness, as it did last week; however do feel that the forthcoming dip will be a bit more significant and should occur sometime next week, and as early as Monday.
Not sure if this would be a tradeable dip with options. If the DOW drops to the 8500-8700, such would be a good opportunity to buy the dip to go long for the short-term, since the technicals are indicating at least a retest of the highs, if not higher.
If a double-top does form after the next upswing, that would be the first strong hint of a mid-term top.
I still feel that we are in a trading range, with the TOP near 9091, but with the current momentum supported by strong liquidity - anything can happen.
Have noticed that some analysts have already started downgrading some HiTECH stocks/sectors on the basis of reaching valuations, so on a subjective basis such action is hinting that we should be nearing some sort of mid-term top.
I am still away, just using my friends computor.
seeya |
