Friday,
The market bounce is well under way now, but the conditions by which it is bouncing show no long-term support and this bounce is likely nothing more than to show a double top.
The DJIA gained 197 points today showing a good deal of optimism remains in this market heading into the weekend, but time smart money buying was below accumulation levels and I don’t anticipate this rally to be anything other than a short-term bounce, and until we see some quality reversal of the current trend the
The NASDAQ bounced +34 points today but the volume was weak and the gap up created this morning inserts a flaw which will need to be corrected, this means shorts are going to have the upper hand as they know the gap will must be filled. This continues to be a traders’ market in my opinion and we have been successfully using it all year and will continue to do so.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is came in at (04); this tells us today’s buying was not that of smart money and this confirms the lasting power of this bounce is nothing to get excited about. I would look for the market to repeat more of today’s action Monday, as lows are tested and new highs are made where short-term potential is relevant to those trading smart.
As Always; Be Smart, Be Patient, & You Will Be Successful.