Buzzzzzzzz: What is Dip, Dip, Dip, Dip, Dip, Dip, Dip, Dip.
Yes, it was just what the Doctor ordered. We had a nice dip, a pullback, and it reversed at the uptrend line creating a "buy the dip" opportunity for those paying attention. Were you paying attention? Did you review a ton of charts looking for those stocks setting up for a buy? Did you add to existing long positions that were setting up for more upside? Hope so! Wed was the get in early day. Thursday was the safe bet day. And Friday was the late entry momentum day. Will Monday bring more upside?
Let's Look at the DIA, SPY, QQQ, VIX
Friday's Intra-day charts: These charts (DIA, SPY, QQQ) are giving us signals filled with indecision. There was no rally into the end of the day, nor was there strong selling into the close. So nothing giving a strong carry over to Monday for the upside or downside.
Daily Charts - The DIA's Friday candle is giving us a signal of indecision. It could even be signaling that things are again looking a bit "toppy". The SPY isn't much better, having hit the uside resistance once again. A push thru 138 is needed for the SPY.
3 Day and Weekly - These charts are looking stronger for the SPY and the QQQ. Both are clearly looking for a break to the upside, the weekly looking like a dragster spinning it's wheels, getting the tires hot and sticky, just waiting for the light to go green. The DIA is not acting quite as well. It's working harder to stay at the upside resistance, giving a stronger indication that it needs more sideways consolidation before breaking thru the next upside barrier. I get the impression that perhaps the market is getting comfortable with the improving global situation and is moving toward increased risk, shifting it's attention from the die hard blue chips of the DOW to the SPY, the QQQ and even the RUSSELL 2000 and 3000 ............ both of which we up strongly the last couple of days.
The VIX. All the hoopla about the pop over 20. Hmmmmmm. A little quick on the draw by the pundits proclaiming doom and gloom. With the Greek deal done and Employment looking better, the VIX is squarely under 20 and sitting calmly at 17, give or take. Sanity reigns once again.
Charts, Charts and More Charts!!
No comments:
Post a Comment