Bulls need to excercise caution here.  We can see the potionial for an UpThrust on the weekly chart of the ES.  If the market is unable to rally away from the danger point this week and instead falls further and closes lower, we will enter a trading range punctuated by the early May high to the mid-March low.  I suppose we are due for a reaction. Adding to the potential for a … [Read more...]

Last week, we saw the market rally up into new high ground for the year.  As we have been discussing for many months, the market overall remains quite bullish.  There has been no serious indication of supply thus far.     The daily chart below shows a nice gap up and island reversal.  … [Read more...]

We have rallied for three days in a row.  We are beginning to see a little shortening of the thrust on an increase in volume.  Yesterday, all major US markets made higher highs, except the Nasdaq.  It painted an inside day. Inside days can lead to trending conditions.  So, watch the Naz today for early clues.  Levels I will be watching today are yesterday's high at 1358.50.  … [Read more...]

Watch the Russell 2000 today.  It was the only market to not make a new high yesterday.  How it negotiates the 85.88 level (basis the ETF IWM) will tell us how the market will act today. In the S&Ps, 1337.75 could be tested.  Yesterday's low comes in at 1334.50.  We are trading near yesterday's high of 1346.25 this morning.  1356.00 is a level to watch if the market … [Read more...]