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Friday, February 8, 2013

Friday Weekly Charts

Pivot point P is support, R1 is resistance, and the congestion zone we just went through  is directly in the middle. That's about all you need to know right now.

I wouldn't be surprised to see the weekly pivot R1 hit sometime this year, but to have it hit this early in the year would be a shock. I have a feeling it won't quite get there yet.

 The Nasdaq has to get above the 2012 high before it can take a shot at R1, and for right now, I don't believe it will.
 Look at where the Dow industrials are hitting resistance. Bullseye.

Don't expect me to make sense out of the transports charts. The se have lagged badly for the better part of 2 years, then out of the blue go vertical. What is different now than, say, 3 months ago? Beats me.

I think I will be watching the Russell 2000 as it approaches R1, which it is very close to now and could hit it in another week, maybe two, if the market does not pull back first. It is when it hits it it will get most interesting, because the Russell 2000 is normally, but not always, the first to give clues about the future direction of the market. The huge rally it started at the end of November was a clue that the market was a lot stronger than most of us thought, and if you were really paying attention (I wasn't), you would have caught on to that.

Well, the Dow has hit resistance, the Nasdaq is at a critical point, but the SPX and Russell have room to move higher, so we weil soon know which one has the most sway in this market. I am still anticipating a correction, but am trying to accumulate some strong positions in case it doesn't happen.

I will have the new highs update shortly.

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