SP500 closed on Monday at 1.315.20, more or less the same as the last two days. DOW closed lower than Friday at 12.707.5.
The market has been very optimistic until mid session. It now seems like EU will save Greece. The last week has been negative speculation which now seems to turn. This is probably priced in by now.The way of trading in New York Monday by sudden rallies and dips use to be the beginning of a top. Although the daily and weekly trends are still up and the price channels on the charts are holding well I am still searching for any weakness in the uptrend.
SP500 main resistance point on daily or weekly close is still 1.116.10. Now we have had three trials of the index to close above without success so now it is time to watch closely. DOW' drop to a lower close also indicates to the investor to carefully follow the markets now.
Europe has the same problem but they are not testing July's top as the US indexes but the October top. Pend-ling up and down these points. Another reason to be careful with Europe is the technical bear market that exists. For Europe the 8 months falling MA has crossed the 21 months MA on downside which use to be a strong indicator of a sudden turn around when the monthly bar goes over the 8 MA.
Very many technical indicators speak against each others just now.
The market has been very optimistic until mid session. It now seems like EU will save Greece. The last week has been negative speculation which now seems to turn. This is probably priced in by now.The way of trading in New York Monday by sudden rallies and dips use to be the beginning of a top. Although the daily and weekly trends are still up and the price channels on the charts are holding well I am still searching for any weakness in the uptrend.
SP500 main resistance point on daily or weekly close is still 1.116.10. Now we have had three trials of the index to close above without success so now it is time to watch closely. DOW' drop to a lower close also indicates to the investor to carefully follow the markets now.
Europe has the same problem but they are not testing July's top as the US indexes but the October top. Pend-ling up and down these points. Another reason to be careful with Europe is the technical bear market that exists. For Europe the 8 months falling MA has crossed the 21 months MA on downside which use to be a strong indicator of a sudden turn around when the monthly bar goes over the 8 MA.
Very many technical indicators speak against each others just now.
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