The market did a pullback (13424 on the Dow; 1439 on S&P500) and rallied to close around the same range at last week prices. If you are a short term trader, hope you have been profiting from the dips. Let’s take a look at what the charts have to say about next’s week outlook.
The weekly chart on the Dow and S&P 500 is still making its way up. But quite some resistance at the 1475 zone on S&P500, but Dow is already making new high.
The daily chart of Dow and S&P 500 are still pointing to the upside. RSI is in the overbought zone. MACDH is showing sign of weakness in the bull. But at this point in time, we need to give the benefit of the doubt to the uptrend until key support lines been broken (refer to 1 Oct posting for support lines). I can see short term support being 13500 on the Dow for now.
S&P 500 on the other hand is not making new high like the Dow. When the two ‘big brothers’ are not singing in the same tune, we just have tread carefully.
Both VIX weekly and daily are showing sign of MACDH div to the upside. Still in sideway trend to the down side, but currently near its low of its range. Potential bounce might happen next week on the VIX.
Summary:
Mid Term View:
Market is still UP.
Short Term View:
VIX might rally, and small pull back might happen again. Protect profits with tighter stops or hedge your positions for existing ones. Dips might be opportunities for new position so long all support levels are not broken.
NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
