The S&P 500 has pretty much been on it’s own setting new highs. It can’t last forever and there has to be profit taking from time to time, but I will let the charts talk me and not the news or any other source. Charts have no emotions. PV-1 represents the last pivot low on the short term uptrend. We had a small pull back and a new pivot low that was higher than the last, but it did cause me to adjust the short term uptrend to a slower pace. That’s not a bad thing. We want higher pivot lows to keep an uptrend, so all is good. Price is back above the 50 day moving average so that warning has been cancelled. The CBL warning is still on, so the S&P 500 on the daily is a watch.
Remember that inverse head and shoulder breakout the Small Cap made back in December 2014? Well were suppose to get a nice little upside push targeting about 12% upside but that has broken down a bit. It is still possible that we could still get that push because we got that higher pivot low established last week. This chart and S&P 500 look similar at this point, but we all know that the Small Cap has been struggling to make new highs. $1064 could not be held and I still believe it is a key level. We must get above it and hold it or otherwise we will reverse lower. It looks like we are squeezing into a point of inflection. It appears we are going to get some type of resolution higher or lower by mid-February at the latest. Your guess is as good as mine on direction. Current price is above the 50 day ma, so that warning is off. Price is still below the last CBL, so that warning is still on.
The International index broke down further out of a Bear flag and that normally means lower prices ahead. The hopeful higher pivot low broke at just two, so there is nothing positive here yet. It is also another reason not to bottom fish without some type signal.
There is not a lot to say about Bonds. All warnings are off and it is slowly grinding higher.
The Rankings below
There appears to be a new base building in Oil and we will see if that holds. I still haven’t quite figured out why when oil goes down, so does the stock market. Seems to me, long term that this will good for most businesses except Oil. Some jobs and businesses will be lost as long as oil stays below $50 to $55 a barrel in this country.
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