You are currently browsing the The MPT Rating weblog archives for the day 19. May 2008.
19. May 2008 by admin.
Monday,
The markets sold off by the close, but also saw new highs and maintained the ascending lows in 2 of the 3 averages, and with the resent brake outs we’ve seen it is not likely the end of the bull market return, but a hesitation to build support.
The DJIA; closed up 41 points forming the inverted hammer (sell signal) on the 6 month daily chart, but the break out pattern we’ve recently seen developed there mutes this sell signal… the slow stochastic indicator is at 57 (hardly overbought any longer), and with the RSI yet to reach the short-term overbought conditions over 70 on this chart I believe we have higher yet to go… this does not mean we will not see down days in the process.
The NASDAQ; weakest of all our market charts (most overbought) closed down 12 points for the day, but again a quick review of the low point of today verses Friday and you will see the ascending uptrend remains in tact even here… and with several strong supports built into the chart and the RSI indicator still under 70, I do believe we can still go higher in the markets, though I would anticipate down days in the mix as weak investors get shaken out of good stocks.
The S&P500; closed up 1 point for the day forming the same inverted hammer sell signal as the DJIA for the day, but again the break out conditions void out the sell signal, and with the RSI indicator still under 70, I see more upside to this chart and the ascending lows and new highs also confirm this.
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 (08), and this is a very strong bull reading, telling us there is a good bit of “Smart Money” pouring into the market… If you are thinking this market is overly bearish you would be mistaken… pullbacks are natural, and should not be mistaken for bearish market signals – we see the markets going higher, though we do not foolishly anticipate this to happen over night.
As always I recommend investors and traders, be smart, patient, and ever successful.
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