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Today´s Outlook
- Bullish %: not important right now
- Current reading is -29, 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.
The week ahead is a preholiday week and is normally bullish going into Labor day next week.
Analysis
The sell signal was fulfilled and again reversed on the open. It is all up to follow through now. 1040 and 1052 have been tested and held so far.
1040 is critical to long range thinking on the market and has been for a long time. If it is allowed to break down wave 3 of 3 down may indeed have started. However, under that scenario a pullback to 1084.50 should occur first with 1084.50 failing.
Unfortunately that doesn’t get the street a bonus after a year of underperformance. Any portfolio manager is screaming right now. And, they’ll be screaming for several years to come. But that doesn’t mean we can’t get a rally into November and possibly a very stout rally. Exceed 1084.50 and the winter rally is on. Before that we need buy side volume to offset the selling.
The retail guy is gone; the street can do just about anything they want.
We have a 123V pattern with a tested HL. If this pattern fails, there is little doubt the downside will be harsh and fast.
Good luck with your trading! |
