Last week's indicator review constitute consistent strength across the indicators in addition to a bullish bias amid intermarket themes. That bias continued this by week, equally nosotros saw farther weakness inwards the US of America dollar in addition to strength inwards gilded in addition to oil. Sectors continued their upward trend, in addition to the advance-decline lines for the major indexes hitting fresh bull highs.
As nosotros tin forcefulness out meet from the exceed nautical chart of the Cumulative Demand/Supply Index, momentum has expanded during the by calendar week in addition to we're similar a shot inwards moderately overbought territory. New 65-day highs minus lows (bottom chart) hitting a bull marketplace position high this by week, suggesting that participation inwards the rally has been strong.
Given the recent slowdown inwards the marketplace position rise--two consecutive daily readings of weak momentum--and the market's overbought status, it would non endure odd to meet consolidation of recent rigid gains. Momentum peaks (peaks inwards release of stocks making novel highs, peaks inwards cumulative Demand/Supply) tend to precede cost peaks, in addition to then I would non assume that near-term weakness is the starting fourth dimension of a deport turn. Rather, nosotros may meet a marketplace position become into a topping manner for a while, bringing swings both to the upside in addition to downside in addition to eventual novel cost highs.
Here are the weekly cost targets for SPY:
Pivot = 106.34; R1=108.86; R2=109.36; R3=110.03; S1=103.82; S2=103.32; S3=102.64.
Have a dandy calendar week trading.
.
No comments:
Post a Comment