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Charts courtesy of stockcharts.com

Friday, September 27, 2013

Friday Weekly Charts

Reports of the demise of the recent correction may have been a bit premature. Now hat we are near month end, it is getting apparent which pivott point we are going to finish near, which means we just might not get tha quarter end rally after all. Then again, we just might. Whenever you think you have the market figured out, it tosses you a curve ball.

The weekly chart is starting to look a little disturbing: while the recent corrections have not been very severe, the subsequent bounces are getting weaker.  This one did get to a new high, but didn't stay there long.
 
The Nasdaq is showing nearly the opposite: weak pullbacks and strong bounces. Vilume is very favorable for the bulls here.

 The Dow is even worse than the SPX, and heaven forbid, almost looks like a head and shoulders pattern. My track record at calling the dreaded H&S is not very good, so I won't touch this one.

 The transports are in a pretty strong up trend, if you don't compare it to the up trend it was in earlier this year, which was, to say the least, an anomaly. This one looks more realistic and sustainable.

Correction? What correction?  The Russell 2000 has yet to establish a resistance level since it did get to a new high this week. If the market is weakening, it sure ain;t doing it here.

The month end rally I was expecting has so far flopped, alhough some areas of the market are doing quite well. It is the purpose of this blog to find those areas, and so far this year I have done a reasonably good job, but there is lots of room for omprovement, and that is what I expect to be doing going into the last quarter of the year.  Hopefully by January I will have a finely tuned trading machine here.

I will have the new highs update shortly.

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