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As the Dow and S&P move up to the top of this trading channel, we've been in
since 7/1 or 7/2, it is again time for a test of market endurance.
I wouldn't get out of equity funds until a good break of the lower channel
trendline, but we're approaching this upper line a little differently than
before. I've got my TRIN level at .86, somewhat bearish, not quite
overbought, but the most bearish TRIN since mid June.
>From an Elliott view, regardless of where anyone thinks we are, the type of
pattern from last Friday is not usually the most positive. After a very
quick intraday drop on Friday on the Dow and S&P, it has taken us over three
days to get back to where we were. The S&P is doing a little better in this
regard, but still, in an uptrending market I like to see the strong days
that cover lots of ground, go up, not down, and the weak, indifferent days,
trending down, not up as we have here .
My fingers are crossed on this one. It would be disappointing to see us
stall out at the upper trendline again. If that happens, I think we might go
to the other side of the channel for a test of the lower trendline.
Comments?
PJLaird
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