The Dow and S&P has continued to stay UP. This overbought situation has happened a few times during the bull run since 2009’s rally.
Will history repeat itself? Let’s take a look at the chart.
The weekly Dow & S&P chart seemed to be saying they do no wish to go down. This situation can go on for about one month to two as we had previously experienced it since the 2009 rally. For the bull rally to be intact, it must not go below (est Dow 13200; S&P 1420).
The Daily Dow & S&P chart is in a really tight range. Looks like a pause in an uptrend. So long the support is not broken, the trend should continue to go up. But don’t be surprise that the market stays undecided till the US election is over.
The weekly VIX is still in down trend. MACDH is showing sign of possible divergence.
The daily VIX is also in a down trend. RSI suggest the trend is in a range on the daily, and price is near the bottom of its range.
Summary:
Mid Term view:
Market is up, so long the support is not broken.
Short term view:
Market will be very sensitive to news. Any big moves both up and down should see alot of opportunists coming into the market to profit take, or buy at support as long as the trend stays in the range. Short term resistance being at last high, which i believe the market should be looking to retest that high.
VIX suggests some selling might be taking place in the coming week. But that does not mean major sell down, and break the bull trend. Pull backs like how it did last week might be happening again.
NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
