Monday, April 10, 2017

The Market's Last Hurrah

The Market's Last Hurrah  


Spent some time studying the short term charts after Friday's close, found the Dow and the $SPX trading into what looks like a megaphone top (AKA a broadening rising expanding triangle), which points to wave 5. This would mark the end of the rally of the past several years, and set up for a major correction, or worse. 

DOW - see the pattern in blue. 

$SPX 5 min chart - same pattern
Consolidating in the bottom of the range. Note: Wave 4 price action is allowed to interfere (overlap) with wave 1 action, in this type of pattern, but wave 4 should not fall below wave 2 (2344.73 is key support). New all time highs possible before the end of the month.  We still haven't seen money put to work in April.


$SOX support looks like 997 and probably headed for new highs.
 

Gold failed to hold the new high, so I'm still calling it wave "a". 

Oil looks like it wants to pull back suddenly, but still remains in an uptrend. 10% shakeout possible 

$VIX resistance looks like 12.94. 


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