As the market has been
moving up, some "not so good" signs exists. One, is our
chart on the
DJI which shows its Power Money Flow plotted against the Index.
Its
Power Money Flow has been trending lower which is not a good support sign
for
the DJI. As its Power Money Flow is trending down, the DJI has been
fighting
its upper wedge's (red resistance line below) resistance in attempt
to trend higher.
In spite of the exuberance of the NASDAQ, the DJI has so far
failed to rise above
this important resistance level.
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Our Fear Index's fast green indicator line moved up
yesterday into No Fear Territory which is positive.
However, note the
tremendous oscillations that the green indicator has been going through.
This
is indicating a huge struggle between the Bear and Bull forces in the
market.
This kind of
action leaves the market exposed to higher intra-day volatility and
risk.
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Just as the DJI has not yet managed to rise above
its wedge formation's resistance line,
the S&P below has had the same
problem. The NYA Index has also not been able
to rise above its wedge's
resistance.
Be very cautious ... because if we fail to
rise above these resistance levels, then we
could see a retreat from
here.
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