Dow ends down 1% for the week
"Dow ends down 1% for the week", should have been the headline, but what is being reported by the fake news is "markets in turmoil". Don't believe the hype.
While everyone else was wringing their hands over a 1% pullback, we caught a nice rally in Biotech. That can continue, and especially if a new healthcare bill is revealed.
The Dow did sell below the 50 day last week, so that becomes widely accepted resistance...
Many players are still on vacation, and passover doesn't end until sundown, on Tuesday. That sets up for a powerful rally into OPEX Friday, or at least back to the top of the range.
DOW chart changed slightly, but is still trading in a range. Support is the previous low around 20,400. Futures are down, but set to open in the green, so we're not seeing any follow-through from Friday's panicky close. Many markets are still closed.
SPX also trading in a range in what looks like a sideways contracting triangle.
Still looking for a pullback in oil, and gold, and that brings me the - self explanatory - dollar chart.
$USD (AKA the $DXY). Seeing Dollar strength this morning.
Biotech broke out of it's down-turned (bullish) triangle, but trades into a bearish H&S pattern @ 69.90 on the $XBI. On a pullback the (previous) top triangle line, becomes support.
Financials consolidated into wave B, so watch for financials to lead a powerful snap-back rally.
Hope everyone had a good holiday, AA
No comments:
Post a Comment