You are currently browsing the The MPT Rating weblog archives for the day 14. May 2008.
14. May 2008 by admin.
Wednesday,
The markets followed our MPT Rating with perfect accuracy producing the rally on Wednesday after our MPT Rating came in bullish at (05), but today’s MPT Rating is a different story all together…
The DJIA (View Chart) gained 66 points by the close after giving back about half of the day’s gains… This activity forms a bearish candlestick formation on the 6 month daily chart showing sell pressure, but of the three charts linked from this daily report, the DJIA is still the strongest of the three from a technical stand point, but in this market I would look for that to only equate to sideways activity as there is currently no upward catalyst to take us higher there.
The NASDAQ (View Chart) gained 1 point for the day after it also sold off by the close and formed an even more threatening inverted hammer (bearish sell signal)… the slow stochastic indicator is also heavily overbought, and with today’s MPT Rating of (03) I would not recommend anyone touch a long position tied to this market. As mentioned before, the NASDAQ needed to break through the resistance line to establish an anchor for future reference, but both the NASDAQ and S&P500 charts have lows on their charts which have yet to be tested and this is required before we start looking to the future and any substantial rally forward.
The S&P500 (View Chart) closed up 5 points for the day showing the same inverted hammer (bearish sell signal) on its 6 month daily chart, but it has also yet to break through the upper resistance level and this tells me to beware! If this market average does not advance to break through the resistance and form the anchor point on the chart, the sell off will have less bullish bounce potential and could see the low point of this chart break down… This is a bit forward looking but it is something we want to pay attention to.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets tomorrow (short of any surprise bull or bear news) came in at (03), and any member who has been with us any amount of time will tell you it is time to close out the overextended long trades now. I would not be surprised to see an attempted rally Thursday morning, but I know this is where I would be exiting those stocks which are already over-extended.
As always I recommend investors and traders, be smart, patient, and ever successful.
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