Today the market has decisively broken the resistance at 1100 and made a new high. In the previous weeks the volume had been increasing with the rally, however today’s volume was substantially higher. After the previous major accumulation day, today’s strong market breadth (NYUPV:NYDNV=7.37) has further affirmed the uptrend. The last three day’s consolidation (a flag pattern) fixed a few overbought conditions on technical indicators. At the moment the market may revisit the nearest support but large pullback may not be likely. On the SPX intermediate-term daily chart, negative divergence on several indicators are still there but we have yet to see when it will become a real problem. On SPY 30-min chart, all indicators show negative divergence which could lead to minor consolidation or pullback.
SPX daily
XLF is quite weak in these days. On the hourly chart, the trend is up and a bullish flag pattern formed. The volume increased a little bit but not very significant. The nearest resistance is 15.38.
XLF hourly
QQQQ broke out from the consolidation today and revisited the nearest support at 44.16. RSI and MACD have a little bit divergence so further pullback may be expected, but i guess it will be bounced back up again at around 43.75.
QQQQ hourly
As previously mentioned, US dollar more or less indicates where the broad market will go over the intermediate term. On the daily chart, one can see that there is no sign of downtrend being reverted.
US Dollar index daily
Summary: uptrend has been confirmed. A pullback (or consolidation in certain sectors) may happen but it would be a buyable dip rather than a short opportunity.
No comments:
Post a Comment