-The move this past week was on low volume. My concern is the lack of conviction in terms of the investment communities’ participation. I am not convinced that the move has legs. Volume will return this week and there will be a general mood of anticipation with Obama’s administration taking over. If we do continue up, my sense is that it will be very short lived. The next level up is 9653. Let’s keep a close eye on how the market reacts when everyone is back from vacation. My bet is that the index may flirt with higher levels but very briefly and then will retrace to test 8348.
-I feel pretty much the same on the SPX as I do on the INDU. I believe the index will try to go higher for a brief moment in time and then retrace to test 845.
-Same story here.
-Volatility is lower evidenced by the VIX in the mid 40s. The chart indicates the same with narrowing of the bollinger bands and the formation of a symmetrical triangle. Volume has been extremely low for the most part due to the holiday season. I feel that we will go up to test the 9000 area. Note how the market reacts at that level to give you clues on further movement.
-Look for the SPX to test 918. As mention in the INDU chart. Look for clues at that level as to further movement. I’ll keep you posted as necessary.
-I believe that the COMPQ is going up to test 1600. Analyze the volume and conviction of the move and how the index reacts at that level.
-We continue to trade in a channel. Volatility is reducing as evidenced by the VIX closing at 44.93. Watch the critical areas of support and resistance and how the market reacts to those levels. I will keep you updated midweek if I see anything of significance.
-See INDU comments.
-See INDU comments.
For the short term, we are still in a channel. However, the market’s strength in the face of ugly news is very impressive. We ended the session on Friday with a modest gain but we formed a “Bullish Harami, Hammer” I feel that in the next few sessions we will go higher to test the recent swing high at 9026. I will give you midweek updates as necessary. Pay close attention to how the market reacts at critical levels of support and resistance.
My comments here are very much the same as the DOW. We are going up for the for the next few sessions. The first test will be the recent swing high at 918. If we break that level with conviction, we will go into the end of the year with bullish sentiment.
Friday’s session was a “Piercing Line” candllestick pattern. Look for the COMPQ to test 1603 on a bullish move this week. If it breaks that level with gusto, we will finish the year on a bullish note. Stay tuned for midweek updates as necessary.
Watch to see how the market reacts at 8923. This level also happens to be a 61.8% Fibonacci retracement from the 11/4 swing high and the 7449 low on 11/21. I feel we are going to pull back.
See INDU comments.
See comments above.
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