Last week, the pull back did happened. But it happened earlier than expected. However, the strategy would have worked if you had got in on a pull back. Let’s see what’s the outlook for this coming week.
Weekly chart of the Dow and S&P remains on an uptrend. There’s still some space for further up leg before hitting the ‘ceiling’ at the upper channel zone.
Daily chart of the Dow and S&P looking quite bullish. MACDH failed to go into the negative territory during the pull back. Technically, there’s some room to go before it experience some selling pressure as prices move into resistance area at the top of their channel.
Both the weekly and daily VIX chart is on a down trend. The daily chart is something to watch out for. The gap down from last Fri failed to push MACDH into its ‘RED’ zone. When prices reach the low or create new low for the year, i suspect we might have a condition for nasty correction to take place.
Summary:
Mid term view: Ride the trend or stand aside.
Short term view: Some room for further up run, but prepare for a choppy ride as prices move into its resistance zone (Dow: 13100 – 13200; S&P: 1400 – 1420; VIX support at $15 – $14).
