INDEX UPDATE
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WARNING: YO-YO, WHIPSAW, YO-YO, WHIPSAW, YO-YO, WHIPSAW, YO-YO .....
When the DOW was up 60, the DOW,SPX,OEX just entered the overbought region. Per my SHORT-TERM TECHNICALS, the DOW would become a weak CLASS 2 SELL if it gets up about 80-90 points today.
So will the DOW,SPX,OEX,SOX continue up to short-term extremes per my CLASS SELLs or will they reverse down from here and possible pull the NAZ lower to set more lower lows.
Right now the DOW is testing the UPPER TINE of the MAIN DESCENDING PITCHFORK. I feel that the DOW could move up a little more or remain relatively flat into expiration day, then another downswing could start near Monday or as early as FRIDAY. I am leaning towards the forthcoming downswing to set LOWER LOWS and bring us to the 8700-8800 range by the end of the month which is near the MIDDLE TINE of the PITCHFORK. Then a rally in MARCH which could bring the DOW back to the UPPER TINE OF THE PITCHFORK, which would be around 9200 in MID-MARCH. Then early/mid-April the stronger negativity could start to show its ugly head.
Seeya |
