The first week of the new year started strong and ended with 5 consecutive higher closes despite the weak jobs data on Friday. The Nasdaq spent most of the week in a sideways chop, waiting for the broader market to catch up. Markets approaching overbought so I'm expecting some consolidation/retracement sometime this week.According to IBD, the market is back in a confirmed uptrend. Pressure from distribution days has been neutralized or turned positive because the price has moved substantially above them.
The $USD is consolidating its gains in a flag pattern, but if it doesn't break soon, we could see it slip back.
The new year also saw some sector rotation with Energy, financials, and gold leading on the long side, as some high flying tech names take a breather.
A few charts to watch next week. GLD is forming a base a $112.00MON is testing a lengthy base at $87.00. We have 2 inside bars on Thurs. & Fri.
AMZN appears to be forming a symmetrical continuation triangle. Looks like a good swing trade setup.
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