An unusual move for the stonedinvestor.
Granted sometimes I don't take the good times well... it's a fault... but I really don't like turning on the television and seeing one fat faced republican after another grinning with meat juice on their chin rah rahing the market,.
The overwhelming sentiment last week was 100% bullish. !00% Overseas. I look for both sentiments to crack this week.
The Dow closed higher for the 19th time in 21 trading days. Going back to the Dow's inception in 1897, this has never happened before. While "they" saved the Dow from closing down on the day, the last 90 minutes of trading were weak on Friday. That makes two days in a row that we have seen noticeable weakness in the last 90 minutes of trading, something we have not seen in some time. In light of the extended nature of this trend, this is likely a precursor to a more serious change of trend. Once it cracks, there is potential for very quick profit taking to bring prices in. Generally speaking, strong runs of this nature tend to be followed by a corrective period of two to eight weeks. As is common with corrections / consolidations, some were relatively flat while others displayed a more visible pullback. It was rare for an ominous looking pattern to develop before turning higher. However, the next push higher proved to be significantly important in 1929 and 1968 when major highs were reached. The S&P 500 remains shy of 1500. Interestingly, the S&P has traced out another very minor head and shoulders pattern.If history remains consistent then the SPX will reach 1500 on Monday. After a two day consolidation, the S&P should be primed to pop higher. Of course this is all dependent upon the S&P holding above 1490, which was bent but not broken on Friday. When the dust settles this week we should have seen enough to confirm at least a minor high was reached last week... Seeing the weekly trends turn down will convey a more serious message. And I believe that message WILL be sent by the market t o it's complacent participants. ~ stoney
Granted sometimes I don't take the good times well... it's a fault... but I really don't like turning on the television and seeing one fat faced republican after another grinning with meat juice on their chin rah rahing the market,.
The overwhelming sentiment last week was 100% bullish. !00% Overseas. I look for both sentiments to crack this week.
The Dow closed higher for the 19th time in 21 trading days. Going back to the Dow's inception in 1897, this has never happened before. While "they" saved the Dow from closing down on the day, the last 90 minutes of trading were weak on Friday. That makes two days in a row that we have seen noticeable weakness in the last 90 minutes of trading, something we have not seen in some time. In light of the extended nature of this trend, this is likely a precursor to a more serious change of trend. Once it cracks, there is potential for very quick profit taking to bring prices in. Generally speaking, strong runs of this nature tend to be followed by a corrective period of two to eight weeks. As is common with corrections / consolidations, some were relatively flat while others displayed a more visible pullback. It was rare for an ominous looking pattern to develop before turning higher. However, the next push higher proved to be significantly important in 1929 and 1968 when major highs were reached. The S&P 500 remains shy of 1500. Interestingly, the S&P has traced out another very minor head and shoulders pattern.If history remains consistent then the SPX will reach 1500 on Monday. After a two day consolidation, the S&P should be primed to pop higher. Of course this is all dependent upon the S&P holding above 1490, which was bent but not broken on Friday. When the dust settles this week we should have seen enough to confirm at least a minor high was reached last week... Seeing the weekly trends turn down will convey a more serious message. And I believe that message WILL be sent by the market t o it's complacent participants. ~ stoney
