09
Dec
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Today’s expected rally didn’t disappoint, but over the past 5 sessions we’ve seen major advances on the Dow (270, 173, 259, and 299) that lead me to believe that we need a small period of consolidation for this rally to continue. If we continue moving higher at the current pace I believe we’ll be setting ourselvesup for a big decline. But if we move lower for a day or two pausing, I believe we can move another 10-15% higher before this bear market rally finds resistance.

Today saw a few more indicators confirm the recent buy signal as the Dow and Nasdaq broke out of ranges on their 60 minute charts that I feel are significant. Best case scenario is these indexes come back and touch their previous resistance to shake out some weak hands or just move lower for a day or two.

markets

markets

The XLF has been acting very bullish these past two weeks making higher highs and lower lows. The RSI broke out of a strong downward sloping trendline, but ultimately a pause is need here before bullishness is overdone. All in all the markets look good and poised for further gains. Any weakness in my opinion should be bought.

markets

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