As much as I've looked for a signal of a turn, it just isn't forming yet. There are no signs of exhaustion but rather a slow steady climb with little in the way of tell tale signs that the market has overstepped itself.
With the indexes trading at or near their highs for this move since late April, we are staring at 8 weeks of an up move and wondering just how far it will carry. Is it possible that the summer rally carries past July? Will the end be signified by a failed gap up/exhaustion move or will there be the slow rollover when it comes.
Each step higher sets up either a follow through or failure case. With the SPX pushing 1139 again, a push beyond those numbers that holds could set off another round of short covering and purchases propelling us to those original targets we set a month ago. A failure here at this level probably does the opposite setting off profit taking and short positioning. That's the way the market works. So the key area to watch is the 1140 area on the SPX. Same thing applies to the NASDAQ where the capture and hold of 2193 likely sets off short covering and additional buying and the inverse being profit taking and short positioning. These key areas setup throughout a move and they get more interesting and dangerous when a move has been underway for a period of time ... like the current one.
With the indexes trading at or near their highs for this move since late April, we are staring at 8 weeks of an up move and wondering just how far it will carry. Is it possible that the summer rally carries past July? Will the end be signified by a failed gap up/exhaustion move or will there be the slow rollover when it comes.
Each step higher sets up either a follow through or failure case. With the SPX pushing 1139 again, a push beyond those numbers that holds could set off another round of short covering and purchases propelling us to those original targets we set a month ago. A failure here at this level probably does the opposite setting off profit taking and short positioning. That's the way the market works. So the key area to watch is the 1140 area on the SPX. Same thing applies to the NASDAQ where the capture and hold of 2193 likely sets off short covering and additional buying and the inverse being profit taking and short positioning. These key areas setup throughout a move and they get more interesting and dangerous when a move has been underway for a period of time ... like the current one.
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home