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Today´s Outlook
- Bullish %: not important right now
- Current reading is -120, if it breaks -300 it should signal a wash out low
Weekly Outlook
Price reversed right at 1040 and should now head upwards. 1052 has been tested and held. The market is oversold and is due for a technical bounce to 1066, 1075, 1089 and even 1106. The reversal pattern remains alive and well and actually projects to the 1214 area. It will be a bumpy ride, should that be reality.
The world should see one more rally before price simply drops to the lows in 2011 and there it should bottom. Health care costs and taxes will cripple the business environment next year.
Analysis
It was as if the market never opened yesterday. The volume simply wasn’t there until the very, very end of day (and I mean the last 15 minutes).
After the market close we have a sell signal going into today. I expect continued selling and distribution at rally highs at this point. September is almost here and with September we should see a resumption of volume.
1113 was the years open. It would be a RARE year indeed if we continue to stay below 1113. Even if the rally is short lived I’ve never known the street to not want a bonus and they don’t get it by selling.
September is often credited with being a nasty month, which I personally don’t agree with. September is normally a good month with October being the real nasty sell environment. November and December have traditionally been rally months. So the order going into the fall is September up, October down, November up, December hold on for dear life down.
For our purposes of day trading, I just want some volume and August this year has been the worst month I’ve ever seen.
Wednesday is a new month and if there is any buying pressure built up it should show itself on Wednesday. Premature failure at 1040 is simply not a good thing. (It really should not happen until December or later). If I’m wrong about September we should get a good clue on September 1.
Good luck with your trading! |
