MPT Rating (02 Weak Bear)

Tuesday, June 24th, 2008; MPT Rating (02 Weak Bear) 

The markets did a lot of dancing today but finished in line with a hold ahead of the upcoming FED meeting tomorrow…

The DJIA; lost 34 points for the day ahead of the FOMC policy meeting tomorrow; the FED is expected to hold rates steady this time, but everyone will be paying close attention to the comments as to how hawkish they are over the inflation concern.  Today’s DJIA activity was a clear bounce off the support line at 11,731 and this could translate into a rally point.  Regardless though, with the RSI indicator at 31.11 I don’t see much more down side without a bounce rally in the near future for the DJIA.

The NASDAQ; fell 17 points today and filled one of the three gaps we have been waiting to get filled… today’s support was a bounce after that fill and thus the market could stage a rally here, but the NASDAQ still has further downside to fill two other gaps and that would have me cautious if nothing else.  The RSI indicator for the NASDAQ is now at 39.39, but compared to the DJIA it is far from oversold here.

Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market today and what to expect with the overall market tomorrow, came in at (02) and this is our weakest bear indicator…  In a perfect world we would see a little selling pre-market or early tomorrow followed by a bounce off of support and a follow-up MPT Rating of (01) or (00) as this would tell us we are at the bottom… for now, it’s just a weak bear reading and we’ll need to wait for the FED before this market shows its true colors.

As always I recommend investors and traders, be smart, patient, and ever successful.

This entry was posted on 24. June 2008 at 22:54 and is filed under Daily MPT Ratings. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.