Wednesday,
Market rallies but fails to catch the attention of “Smart Money”…
The DJIA gained 89 points for the day down from the high and still within the tightening trading range indicated on the attached chart by the support and resistant lines. I see this market as having the ability to break up or down from here, but I think the end result of any break up would only be a double top met by building resistance that will send the markets into a tailspin to find new lows in the near future. Having said that there is potential for a break out higher and with this much unclear you want to be a trader here, taking advantage of the opportunities to scalp profits as holding multiple days is not something the current market offers any certainty of.
The NASDAQ gained 20 points today and failed to close above the resistance line on the attached chart… I see the same conditions here as I see on the DJIA. Trade select opportunities or remain in cash until the smoke clears.
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 (03); we have seen the market rally on these low figures, but the moral of the story here is that “Smart Money” is not loading their boats with stock in anticipation of a major rally here, and that tells us volumes about the conditions of the current market.
As Always; Be Smart, Be Patient, & You Will Be Successful.