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Hi all,
it seems to me, that again we are in a decision phase. While the S&P500 is
approaching itīs old highs, there are hints for both versions, the "jump over"
and the "fall back" version:
- The S$P is only less than 1% below the highs, but the DOW needs much more
to work to reach August tops. This non-confirmation seems to be a negative
aspect.
- But: The Utility Index made significant new highs. It is very often running
ahead of the DOW, so this could be a hint for a further climb.
The Tranportation Index is also in a short term uptrend, but heading itīs
old highs (= resistance).
- Negative Divergences btw. momentum indicators and DOW/S&P show some weeknes
of the present upmove. Shows some probability for a pullback starting at the
old tops of the S&P500. Same is indicated by several resistance lines in the
indicators which couldnīt be broken until now.
- On the other hand there are some indicators in buy-modes (Stochastic, MACD).
- Broader market indicators donīt know what they want: Value Line and
Russell 2000 are presently figthing with their resistances. As well as NASDAQ.
Conclusion: I see about same chances for new highs or a pullback for all market
sectors. So everybody should watch all signs very carefully and not be too sure
about one direction.
The markets should show their mood within the next few days. ;-)
Greetings from germany
Thomas
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