After last weeks selling, Friday looked like your typical "Friday short squeeze", and we ended pretty much flat for the week. Tech down, Energy up. So, now what?
After the big moves we've seen over the past week, I'm expecting the market to consolidate (pause).
We could continue to see mixed markets
Looking at the major indexes:
The DOW is trading back above the 31,000 level, and the 50 day moving average. I think we could easily see a retest of the highs, before we see a correction. March is a big window dressing month, and Passover falls on March 27, and Easter April 4th, and that is the catalyst for more upside. This is prime time for market manipulation, in the form of more meaningless short squeezes.
$NYSE - of course any retest of the recent market highs are going to be another selling opportunity, but not until traders return, from holiday, or May (selling season), which ever comes first.
NASDAQ 100 (big tech) - no doubt money is going to be put back to work here, once the powers that be are finished with their engineered (planned) sector rotation (out of tech and into energy). "There's always a bull market somewhere"?
Watch the 12k level for support, followed by another breakout above 12440 support. Even if 12k was to break, there's the 200 day moving average, and more support @ 11,500 (at my pink line), so I see little risk here. Like, 0 risk... until after the holidays.
I think we could see taking in the Russell, and the so called value trade, and I mentioned financials on Friday. I can only cover so many sectors at a time, especially when charting oil, and such.
Speaking of Oil, we saw WTI crude breakout above the $65 level again, followed by a supposed terrorist strike on a Saudi Oil facility, over the weekend? This just seems a little too convenient to me, but we'll see if these levels can hold, this time.
The $VIX remains contained...
$SPX continues to trade in a range - seen in black. It broke out above the 50 day ma, on Friday, but Friday short squeezes don't count... another shakeout wouldn't hurt.
Take care, AA
s
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