SPX still in the uptrend channel, and still very overbought on the daily charts. Just judging by the frequency of its visits to the blue channel line, we can observe upward momentum weakening. Any correction here has support in the 1130 area, and wherever price meets lower orange channel line. Short-term, higher prices towards 1200 are not impossible, provided we consolidate some.
Very Short-Term
On Friday, price hit 1153 - one of my target areas for a possible turn (refer to earlier posts). A sharp, but small drop followed, and the rest of the session went sideways. There could be a re-test of 1153 on Monday, but i am expecting more consolidation in time or price before any moves higher. If we do continue higher, the eventual trendline break could be dramatic, due to super overbought conditions.
Finish line?
The tortoise has reached the finish line. Will it rest here? Oh wait, we forgot about its older cousin - the Dow Jones Industrials:
On Friday, encouraged by the SPX, it was pulling itself together for the final dash - outperforming by a bit. If the markets do head higher, watch out when Dow kisses 10730, especially if you are long - might wanna trade for some shorts.
Asian Connection
Several asian markets are executing their Inverse Head & Shoulders patterns, and are a few hops away from ideal targets. As correlations in the very short-term have been high, watch these asian levels for a potential turn in US markets. HangSeng - 22000 & Shanghai - 3200
Astrological Connection
Next week is going to be extra special for 'believers' - the Spring Equinox falls around March 21st and has often coincided roughly with some turning points in the market. So bears around the world, be sure to tip the Heavens, if your wish comes true! ;)
All the best for the week ahead!
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2 comments:
Great post. I wonder if the Dow will make a new high before a correction. It will make the Dow Theory specialists very excited if it doesn't.
Thanks Jack. Ya, Dow Theory is surely one of the talking points this week :)
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