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Friday, November 1, 2013

Friday Weekly Charts

 Here are the new pivot points for November: I highlighted all 5, and yoou can see this gives us quite a wide range for the month. We are currently right in between P and R1, so we are beginning the month in a bullish stance, and while we don't know the direction it will ultimately go, we can go down to P and still remain bullish, or up to R1 and remain bearish. Unless the market immediately either gags or rockets, it will be a couple of weeks before we get a clearer picture.

Yesterday it was looking to me like a correction was imminent, and on the daily chart it still may be imminent, but on the weekly chart, it sure doesn't look like it.  Not only are th momentum indicators still moving up, we are well short of the target projected by the pivot points, and at a new high. The volume pattern, while not spectacularly bullish, does not give much to the bears, either.

The Nasdaq may not be as roaringly bullish as it has been most of the year, but it really isn't giving much to the bears, either. MACD might (and I mean "might") be about to flip over here, but that is grasping at straws. If you are counting on an immediate correction, about all I can say here is "maybe".

The Dow industrials, which have been lagging badly most of the second half of the year, appear to be about the most bullish chart of the bunch: a really nice "W" formation and a falling MACD which is turning up. We could be seeing a breakout attempt here very soon.

The Dow transports broke out a few weeks ago, and are the biggest story of 2013. These have plenty of room pivot point wise, and also plenty of upward momentum. The bears don't get much support here.

Well, we finally have something that is dropping, and it's the Russell 2000. If this is bearish and every other char in the market is bullish, I get bearish. This is a little early to be called bearish, but it is damn close: another week like this and I think the market is in trouble.

I still believe a correction is very near, but judging by the weekly charts, it may not be much of one. I am looking for another November 2012 tyoe buying opportunity, and there is a good chance we won't ger one here, but then again, we just might. It would be a good idea to raise some cash just in case we do.

I will have the new highs update shortly.

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