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Friday, November 8, 2013

Friday Weekly Charts

Well, look at this, the market got back every bit what it lost yesterday, and went right back into the teeth of the intraday resistance level at 1768, closing just above it. Not only that , we got almost as much volume as yesterday. So, was yesterday a fluke? Do we resume the year long rally from here? Somehow, I doubt it.

The weekly chart is starting to look a little tired here, even with a new high this week, and we may be about to start pulling in here. We are still well short of the target of 1800ish, but it is quit reasonable to expect at least a mild correction before heading higher, if we do head higher. The run from November of last year has lasted an awfully long time, and it is highly unlikely it will go much longer. That trend is still safe for now, but short term, we are probably going to see some weakness.

The Nasdaq has already rolled over, and unless something drastic changes, it will continue to roll over and lead the market down.This started warning us about a month ago when it stopped leading.

Now the Dow industrial are leading again, and that is usually not a good sign. We have a fresh breakout and a price target in the stratosphere: the chances of it hitting that target appear to me to be slim ad fat.

The Transports have only had one down week, so it is too early to call this a roll over. These usually make big moves down when they do mive down, so this might not be the best area of the market to be in right now.
The Russell 2000 is also not a good place to be right now:  this week it did have a relatively good week (compared to the Nasdaq), and may be ready for a bounce, but when the market starts dropping in earnest, this will also drop faster. So far, judging by this, I am not expecting an apocalyptic tyoe correction, but it is early.

The market tanked on good economic news yesterday, and rallied on it today. I suspect the market is paying no more attention to the news than I am; they are fixated on one thing, how much money the Fed is going to throw at them.

I will have the new highs update shortly.

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