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Monday, January 7, 2019

Daily update 1/7 Wall Street targets

SPX has retraced most of the FED induced move down.

SPX closed above the 20 SMA, but it is severely sloped downward.  SPX also hit the lower Keltner channel line which could provide resistance.  Breadth was +77%.  New highs were a paltry 8.  New lows contracted again to 11.

The futures confirmed a break of the 50 SMA.  They have not made much progress yet so it remains to be seen if they can stay above that line.

The green count actually fell a bit today.  I am not sure that is important, but it is a bit odd.

The market ran into a few sellers this afternoon after a strong morning.  There could be some resistance in this area from multiple sources including the FED day mini melt down.  With the market in a short term overbought condition a pullback here would not be a surprise.  If we keep going higher it is another 30 points or so up to the more significant resistance I mentioned on Friday.  All I can say is to expect volatility.  We are still in an unstable situation.

Interesting targets for 2019.

We appear to technically be in a bear market.  There was a Dow Theory sell signal also.  Despite that the Wall Street targets are extremely optimistic.  There will be a lot of surprised people if things continue to go south.


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.