Window Dressing Finale?

Let's go straight to the charts tonight.



Back to sells for NAMO and NYMO, but they remain rangebound and close to their respective 6 day EMAs. Of note though, is that they are also hovering near the zero line, which implies that should the market continue to consolidate more momentum could eventually come in and take prices higher.



NAHL and NYHL remain on buys and also close to their trigger points.



TRIN and TRINQ both flipped to sells and like the other signals are near their trigger points.



The gap between that upper bollinger band and the BPCOMPQ signal is coming close to touching, but the signal remains in an uptrend and on a buy.

So we have 4 of 7 signals on sells, but the system remains on a buy. Technically, the system looks like it's simply reflecting a consolidating market, but when this market decides to move we'll have little warning. I think higher prices are still in the cards, but we're nearing the end of "window dressing" time for this quarter, which could possibly spell trouble, but at the same time sentiment continues to be on the bearish side with few trusting this market. That means downside risk is probably limited.

 

[Scout333]

Any thoughts that fund managers will sell to lock in profits for this quarter by 9-30-2010? Could push equity share prices down at least temporarily? Buying opportunity?

 

[coolhand]

Any thoughts that fund managers will sell to lock in profits for this quarter by 9-30-2010? Could push equity share prices down at least temporarily? Buying opportunity?

That's a possibility, and we certainly are due again for some measure of correction, but longer term bearish levels are still on the high side and may limit a downside move. The intermediate term still suggests there's more upside to come. No doubt the volatility will keep everyone guessing.