The consecutive monthly win streak, as measured by higher monthly closes, has come to an end at month 8 for both the S&P and the NASDAQ. The DOW stalled in month 4 (June).
From the weekly chart we note that the correction is
occurring on higher volume, so we can expect it to continue. In other words, this isn't just a minor pullback, but rather a
retracement of the some of the gains to date, before we resume the uptrend. I still believe we are on track to reach full extension of the inverse H&S bottom by Apr./May 2010. A correction at these levels is healthy. However, we continue to monitor it closely.
The SPY is in support zone of the August highs and October lows. I've set an alert at $103.00 which is the base that formed off of the October lows. Once we find support, use a Fibonacci
retracement tool to help set targets for the dead cat bounce.
RIMM, one of my
watchlist laggards provided another good shorting opp. on Friday. From the daily chart below, we see that gap support is in play.
AMGN - gap fill support in play.
GLD still holding gap support with relative strength in market correction.
AMZN - bullish flag developing on declining volume.
The consecutive monthly win streak, as measured by higher monthly closes, has come to an end at month 8 for both the S&P and the NASDAQ. The DOW stalled in month 4 (June).
From the weekly chart we note that the correction is occurring on higher volume, so we can expect it to continue. In other words, this isn't just a minor pullback, but rather a retracement of the some of the gains to date, before we resume the uptrend. I still believe we are on track to reach full extension of the inverse H&S bottom by Apr./May 2010. A correction at these levels is healthy. However, we continue to monitor it closely.
The SPY is in support zone of the August highs and October lows. I've set an alert at $103.00 which is the base that formed off of the October lows. Once we find support, use a Fibonacci retracement tool to help set targets for the dead cat bounce.
RIMM, one of my watchlist laggards provided another good shorting opp. on Friday. From the daily chart below, we see that gap support is in play.
AMGN - gap fill support in play.
GLD still holding gap support with relative strength in market correction.
AMZN - bullish flag developing on declining volume.
2 comments:
Love your stuff. I think you meant to say 102 for the SPY support, not 103.
Thanks smacrina,
Yeah, $102 has gap support. But, what I meant was that price may decide to reverse anywhere between $103-102.
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