INDEX UPDATE
=======================================
The minimum requirements of my CLASS SELL signal were fulfilled today, and quite quickly. Now the question is will it continue and how much of a pullback.
In a previous post I was concerned that the DOW did not pull back faster, not realising that the SPX/OEX morphed into a CLASS 1.
Well once the SPX/OEX/NDX/NAZ all gave CLASS 1 SELL signals they reacted early and strong, which implies that this pullback could be strong.
On the other hand the TRANSPORTs did set a HIGHER HIGH and the market internals were weak but not awful.
My short-term technicals on the interest rates(TYX) are now in the overbought range but not yet a CLASS signal so it could move up some more but not alot more for this specific short-term upswing. I am not saying that the rates will head down strongly, just that it should start to pullback some in a few days, staying within its UPTREND.
Statistically, per my short-term technicals, the 3rd day(FRI) of a pullback could be another strong down day. Statistically the 2nd day varies, so dont be surprised or fooled if tomorrow is up.
So it is possible that this pullback could retest the 9100 support area, or even break it to the downside, but as I have said previously my system is not geared for price projections.
The major foreign markets are also in the overbought range and some are CLASS SELLs so they may add a little fuel to continue the pullback.
I did a quick calculation and, surprisingly, this pullback may only last 2-3 more days, unless it takes a zig-zagging pattern. ITs still early, so dont hold me to this one.
Seeya |
