Fridays action in S&P shows that at this high, we still have demand in the market. Every dip so far is lifted up by the deep buyers. Since start of the this year, all pullbacks lasted only 3 days which shows strength in this market.
Market had moved very sharply in last 4 months. Its dream for most of the traders and still some have missed this move as they were waiting for the nice pullback. Lets look at the Daily, Weekly and Monthly graph and you can see the sharp angle of the trend line for this move.....
If market goes above 1405, it is likely to touch 1431 resistance line. If we see weakness next week, I would not add short position till we break 1366 level with sharp negative breadth in the market. I got burned badly in trying to pick the market top and I am not going waste my time on that analysis....
Market breadth is not showing either weakness not strength. It will be interesting to see how it behaves next week and hot it affects the market breadth. So far every breakouts had strong positive breadth in the market and it has sustained it well.
Oversold-overbought ratio is also not showing much movement.
Looking at above situation, I don't feel comfortable to take high risky long position. I need to see either strong breadth or overbought-oversold ratio to be in positive move for couple days before taking high risk long position. I hate to be stuck in choppy market....
I will be looking for both long and short setups...... just to be prepared for next week......
Market had moved very sharply in last 4 months. Its dream for most of the traders and still some have missed this move as they were waiting for the nice pullback. Lets look at the Daily, Weekly and Monthly graph and you can see the sharp angle of the trend line for this move.....
If market goes above 1405, it is likely to touch 1431 resistance line. If we see weakness next week, I would not add short position till we break 1366 level with sharp negative breadth in the market. I got burned badly in trying to pick the market top and I am not going waste my time on that analysis....
Market breadth is not showing either weakness not strength. It will be interesting to see how it behaves next week and hot it affects the market breadth. So far every breakouts had strong positive breadth in the market and it has sustained it well.
Oversold-overbought ratio is also not showing much movement.
Looking at above situation, I don't feel comfortable to take high risky long position. I need to see either strong breadth or overbought-oversold ratio to be in positive move for couple days before taking high risk long position. I hate to be stuck in choppy market....
I will be looking for both long and short setups...... just to be prepared for next week......
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