It's now or we may have to take another test
The last two days have done a good job of digesting Monday's big gains but it's time for the market to choose.
I'm still liking the longer term from here, but the short term had better giddy up or we may need to study for another test. We could be facing a similar fate as the two bounce type rallies we saw last spring.
Chart provided courtesy of www.decisionpoint.com
If we take a close look at the past few days you can see that the S&P 500 has now made five consecutive higher lows and five of the past six days gave us higher highs.
Chart provided courtesy of www.decisionpoint.com
So technically things are fine but the market needs to make a positive move here or we could be looking at another move down toward the recent lows.
That wouldn't be a crime for those thinking about the long term. The indicators are churning and burning a nice long term buy signal but those short and intermediate term indicators are a bit mixed and could make it tough to predict.
The futures are down rather steeply for some reason as I write this (about 1 AM ET) and since the S&P 500 closed at the day's lows yesterday, that mini uptrend could come to an end today. If you like to take chances and trade actively, that could be a sign to step aside for a spell. Next week the Fed will likely be raising rates and there is an important GDP report due out Friday. The uncertainty may be causing some pressure.
Since my return for the year is leaning only slightly positive (+1.37%) even after six consecutive positive months, I'm not too excited about the idea of going back into the red and having a negative October (+.56%). Depending on what I see at the open, I may back off some here.
Remember that 1994 chart I showed you Monday where the market tanked one more time after the November '94 interest rate hike? That's something I can do without. There should be plenty of time to buy again even if that doesn't happen but you'd want to be quick and not get too bearish here. Just a little conservative if you want to preserve some of your recent gains.
Yesterday's Market Item went very quickly so I put a similar item for sale today in case anyone missed out. It's another great deal. Tomorrow I'll get away from the art and try something new. Thanks for your support!
That's all for today. Currently 40% C, 30% S and 30% I fund. Thanks for reading.
The last two days have done a good job of digesting Monday's big gains but it's time for the market to choose.
I'm still liking the longer term from here, but the short term had better giddy up or we may need to study for another test. We could be facing a similar fate as the two bounce type rallies we saw last spring.
Chart provided courtesy of www.decisionpoint.com
If we take a close look at the past few days you can see that the S&P 500 has now made five consecutive higher lows and five of the past six days gave us higher highs.
Chart provided courtesy of www.decisionpoint.com
So technically things are fine but the market needs to make a positive move here or we could be looking at another move down toward the recent lows.
That wouldn't be a crime for those thinking about the long term. The indicators are churning and burning a nice long term buy signal but those short and intermediate term indicators are a bit mixed and could make it tough to predict.
The futures are down rather steeply for some reason as I write this (about 1 AM ET) and since the S&P 500 closed at the day's lows yesterday, that mini uptrend could come to an end today. If you like to take chances and trade actively, that could be a sign to step aside for a spell. Next week the Fed will likely be raising rates and there is an important GDP report due out Friday. The uncertainty may be causing some pressure.
Since my return for the year is leaning only slightly positive (+1.37%) even after six consecutive positive months, I'm not too excited about the idea of going back into the red and having a negative October (+.56%). Depending on what I see at the open, I may back off some here.
Remember that 1994 chart I showed you Monday where the market tanked one more time after the November '94 interest rate hike? That's something I can do without. There should be plenty of time to buy again even if that doesn't happen but you'd want to be quick and not get too bearish here. Just a little conservative if you want to preserve some of your recent gains.
Yesterday's Market Item went very quickly so I put a similar item for sale today in case anyone missed out. It's another great deal. Tomorrow I'll get away from the art and try something new. Thanks for your support!
That's all for today. Currently 40% C, 30% S and 30% I fund. Thanks for reading.
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