“Henceforth, we need to see confirmation Thursday and with increasing volatility.” Two reasons I am quoting myself from last night’s daily. One, because I really do love the word “henceforth.” Secondly, because the concept of “confirmation” and “increasing volatility” is one that will keep you out of trouble and falling in love with an opinion.
The Dow climbed back to an unconfirmed bullish phase, NASDAQ negated the possible reversal candle, The Russell 2000s set up a launch pad from its 50 DMA and the S&P 500 although still working a potential double top, seems more likely to resume the melt up possibility.
Therefore, I end the week full circle from how we began- “Tops, like bottoms, tend to be dramatic. Therefore, I am anticipating more upside with the distinct possibility the market experiences (hard to pinpoint when) another run up to new highs with much more exuberance in volume. “Quote from the weekend daily.
S&P 500 (SPY) 184.95 the highs and 181.38 critical support Subscribers: Positive pivots in all.
Russell 2000 (IWM) 112.85 critical support 115.64 this week’s high to clear
Dow (DIA) 162.34 the high to clear with 159.63 key support
Nasdaq (QQQ) Even without AAPL today, managed to hold well near the highs
XLF (Financials) confirmed warning phase, albeit a weak one
SMH (Semiconductors) New highs-nice living in the semiconductor bubble!
IYT (Transportation) One more push will get this back over the 50 DMA
IBB (Biotechnology) A classic example of why we need confirmations a second day
XRT (Retail) Held where it needed to and looking cheap relative to the overall market
XHB (Homebuilders) 2 inside days-big eyes here!
GLD Back over the 200 DMA and looks pretty darn good
USO (US Oil Fund) Overbought and an inside day
OIH (Oil Services) 48.00 resistance with an inside day to watch as well
XLE (Energy) Inside day here as well
TBT (Ultrashort Lehman 20+ Year Treasuries) Through 72.05, now back to looking at 74.00 area
PHO (Power Shares Water Resources) New highs
UUP (Dollar Bull) 21.60 an area to watch
EEM (Emerging Markets) Subscribers: Held the 10 DMA but still underperformed
CORN (Corn) Subscribers: Inside day
JO (Coffee) Subscribers: Inside day
Bye for Now!
