To make a long story short this is nothing more than a strong pullback within an uptrend where we're taking the stairs up and elevator down.
For the first three charts, all have a green rising trendline you can draw going back to March. As long as we remain above that line, I'll believe the uptrend is still intact.
Of the top three the Dow Jones Transportation Average is the weakest. On Sep 16th it gave us a 1 day early signal telling us the uptrend was losing momentum.
We've already received a bounce off the 20 SMA and are in the middle of the Bollinger bands. This is beautiful chart showing where the previous swing high/lows (yellow box) line up as support with the green trendline and the 50 EMA.
On the S&P 500 with time factored in, we should have strong support with the 20 SMA intersecting the green trendline at 1040
Of the top three I consider the NASDAQ to look the strongest. I was surprised RIM threw us for a loop by not meeting expectations. You may want to keep in the back of your head that earning reports start up again in the latter half of October.
AGG's getting toppy again although at a slightly higher level.
On the left is a 5-min chart showing us hitting our heads yet again.
On the upper right is a daily chart showing us we are still within the rising price channel, but please bear in mind we have an open gap yet to be filled.
On the lower right is the weekly chart showing we are unable (for the moment) to close above key resistance.
Everyone and their mother has been talking about the Dollar. Heck even I managed to scalp a play off shorting silver. But for now I see this as a short term bounce within a descending price channel.
I'll state the obvious. It is likely when the Dollar resumes its fall, markets will resume their rise. Hopefully we can capitalize on this relationship with a well-timed move into the I-Fund.
Cheers... JTH
For the first three charts, all have a green rising trendline you can draw going back to March. As long as we remain above that line, I'll believe the uptrend is still intact.
Of the top three the Dow Jones Transportation Average is the weakest. On Sep 16th it gave us a 1 day early signal telling us the uptrend was losing momentum.
We've already received a bounce off the 20 SMA and are in the middle of the Bollinger bands. This is beautiful chart showing where the previous swing high/lows (yellow box) line up as support with the green trendline and the 50 EMA.
On the S&P 500 with time factored in, we should have strong support with the 20 SMA intersecting the green trendline at 1040
Of the top three I consider the NASDAQ to look the strongest. I was surprised RIM threw us for a loop by not meeting expectations. You may want to keep in the back of your head that earning reports start up again in the latter half of October.
AGG's getting toppy again although at a slightly higher level.
On the left is a 5-min chart showing us hitting our heads yet again.
On the upper right is a daily chart showing us we are still within the rising price channel, but please bear in mind we have an open gap yet to be filled.
On the lower right is the weekly chart showing we are unable (for the moment) to close above key resistance.
Everyone and their mother has been talking about the Dollar. Heck even I managed to scalp a play off shorting silver. But for now I see this as a short term bounce within a descending price channel.
I'll state the obvious. It is likely when the Dollar resumes its fall, markets will resume their rise. Hopefully we can capitalize on this relationship with a well-timed move into the I-Fund.
Cheers... JTH
