I expected market to stay UP. But I didn’t expect a wash and rinse situation which happened on the first two trading days. However, now the market is looking really bullish. How high can it go? Let the resistance zone tells us so from the charts.
On the monthly charts (Not shown here), Oct is looking bullish, with a tail established as a result from the first two weeks of price action. It usually means prices has rejected the low and refused to go lower. On the weekly charts (shown above), prices are sitting in the middle of the envelop, but sentiments is pointing up, in the same tune as the monthly, with some room to go before it reaches overbought zone.
On the daily charts, we are in short term bullish mode. But RSI is near overbought zone.
VIX (Fear index) weekly trend has pulled back from its resistance (red horizontal lines shown on the weekly chart). VIX daily price reached the extreme and pulls back, now sitting on the edge of the green box, close to oversold zone.
Summary:
Long term (monthly chart):
UP
Mid term (weekly chart):
NEUTRAL
Short term (daily chart):
UP
Base on what I am seeing now, market should continues to go up (Dow, 400 – 500 points to go, S&P, 10 – 20 points to go). Market does not go up in a straight line. Any minor pulls back would be considered normal (since daily and VIX daily is near reaction zones). However, S&P should not pull back below 1670. Once a rocket is launched, it should not turn back until it has accomplished its mission.
Cheers
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NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
