Market inched higher again. Any pull backs have been a profitable trade with market inability to break support level. Where do we go from here?
Monthly trend (chart not shown) is still up. RSI is at 78, 10 point away from extremity. Weekly trend is in line with the monthly trend, with room for further up move. No reason for market not to break new high.
Been volatile but support line been holding steadily. With overall big picture trend being up, any dip is considered dip in an uptrend, until it there’s a change in behaviour on the big picture. With RSI and price behaving like a climbing up ladder formation, there’s every possibility for prices to reach top of its envelop (Dow near 14700; S&P near 1590) before RSI reaches short term overbought zone again.
VIX (fear index) weekly is not going anywhere at the moment. VIX daily is ranging within the green box. So long it stays within the green box, fear level is low, and market should continue to sail north.
Summary:
Mid term view:
Trend is still UP. 19 weeks into the up leg (5 consecutive gaining months, 4 months away from longest consecutive steaks).
Short term view:
So long bad news continues its inability to put market to its knee, with VIX continue to range within the green box, market looks poised to break new high. But be sure to only take trades with set up conditions you favour. Do not let market tempt you into a trade for fear of missing out the bull ride.
Cheers
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NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
