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Time for the current upswing in the US
Stock Market should expire by the Friday June 6 close. Per the June
Astro-Trend letter forecast for a high June 4 - June 7 weekend, what has been
missing is some kind of blow off and option sentiment numbers indicating too
many bulls. My NOW Index option sentiment indicator, as of Thursday's
close, just went into over bought territory, but is not yet in sell
territory.
The market has now had 5 consecutive higher
closes. About 75% of the time, this would
be a good sell set up. However, the recent low volatility detracts
from the potential overbought condition of 5 higher closes and presents a
possible exception to this rule. In other words, because the market has
been cautiously crawling up in a self correcting manner for 5 higher closes,
this is not as good of a set up as a market that rockets higher and gets very
over bought over 5 higher closes. As stated above, what would be ideal is a blow
off, if only a mini-blow off. Friday may be the day for this, especially
if it occurs in the morning before 10:52 AM EDT, when the Moon enters Virgo.
If we do get a mini blow off, look for
resistance in the S&P 500 at 1006 or 1016. If we get the expected
top, I expect a $50 pullback in the S&P next week. If
a big short squeeze ensues and
S&P gets significantly past 1016, the
next major resistance is 1073.
GOOD TRADING!
Norman Winski
ASTRO-TREND
<A
href="">nwinski@xxxxxxxxxxxxx
June 6, 2003, 2:00 AM EDT
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