Relentless upward action - this market's on a tear! Last update at 1153, called for consolidation before any move higher. We did dip to 1141 (breaking through the blue channel), and promptly resumed the climb higher, setting up even more overbought conditions. Once again, showing strength, keeping its distance from the uptrendlines. Running out of adjectives here - super dooper party pooper overbought!
5th wave up
Once again, not the place to go long this market. Why? From 1086, we seemed to have traced 5 waves up, so this uptrend(the 5th) should terminate soon, and at least a minimal reversal is due to correct the 5-wave uptrend. Not expecting any outright crash - lotsa support at the 1150 (prev high) and the orange uptrendline.
Target = 1180?
Roughly measured, the target of the Inverse Head & Shoulders identified in earlier posts is around 1180. Althought not immediately possible, looks like the market insists on getting there. Other correlated targets to watch are Dow 10730, Hang Seng 22000, Shanghai 3200 (see World Markets Update). The Russell 2000 (RUT) however, is lagging this latest climb up - a hint of momentum slowing for sure.
Summary
Although bearish on the short-term picture, careful trying to plug this rising volcano (akin to catching a falling knife). Patience pays - let them prices move laterally towards the orange uptrendline and setup a reversal candle, and more importantly - always place stops!
I'll be watching asian market action for the clues described above. In the very short-term, we might see prices struggle upwards with increasing frequency of pullbacks. Hard place to make money, unless you're an agile daytrader. Remember the equinox - this week or early next week could still be significant!
All the best!
Posts
0 comments:
Post a Comment