Tuesday,
Markets gained a little today as stock rise after major selling last week but today’s activity lacks any major buy support (up catalyst) and I would take it all with a grain of salt… This is summer and those of us who have been hard at work all year already have a substantial gain on the table for the year – there is no reason to “force a trade” as one member is fond of repeating.
The DJIA; gained 68 points for the day and formed the continuation up signal thus I would not be surprised to see us continue this climb tomorrow, but I still do not see this sell off as being over and that tells me to be patient, buy quality, and be willing to wait when needed.
The NASDAQ; gained 36 points for the day with the slow stochastic indicator bouncing off the 20 line, but as seen on the chart the RSI is still over the 50 line and that’s not heavily oversold; more in-line or fair value, thus I maintain my target sell-off point and believe we will see the market fall lower before this is over. As mentioned many times in the past we have gaps to fill on the NASDAQ and they will be filled.
The S&P500; gained 9 points for the day bouncing off oversold conditions and the lower BB line; the RSI indicator (more effective at showing extreme over bought or oversold is only registering 47 and that is not too oversold in my book… Being the summer months with little up catalyst I would maintain my anticipation of further selling, but I would not count out a bounce this week – no market falls straight down or climbs straight up.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets in the next session (short of any surprise bull or bear news) came in at (03) which is bearish as no “Smart Money” went into the market today, but this is also the second back to back bear reading we have had and that basically tells me all we need to know – we will be going lower… time is never in our control, but I would look for more selling before we find the true bottom.
As always I recommend investors and traders, be smart, patient, and ever successful.