Another day of the bears looking for lift-off to no avail.
I'm going to be pressed for time most of this week, so if my posts are brief, you'll know why, and please bear with me. No, not literally- be careful here how you're trading this puppy. If you’re shorting, you’re going against the IT trend, so remember that. The daily charts are still looking bullish, the weekly charts look bullish and although there's some hope for shorts in the monthly charts, take a gander at the July candle. SPX ended the day sporting the three white solider candle pattern, as did the RUT and INDU. As all candle patterns go, it has to prove itself in the next several sessions. In brief- the longs have it all goin’ on right now.. for now. The flip side? We have some divergence on the intra-day charts, AAPL and GS both put in less than stellar performances today and NYMO is pushing the limits up here. Cycle-wise, today hit a Fib Time series possible CIT and today was also 90 degrees from the April 26th high for you Ganniacs.
Tomorrow’s economic calendar includes: Red book at 8:55, Case-Shiller at 9:00, followed by Consumer Confidence at 10:00.
Earnings include- PM: AKS, BP, CMI, DD, OXY, PCX, VLO, X and WU. Post bell includes: AET, CBG, LVS and NSC. One third of the S&P 500 reports earnings this week, so be on your toes.
DDT posted this DeMark chart yesterday, in case any of you missed it. He also said this:
“Now - wave C is "LOCKED" - it does not mean it can not be extended - I will be looking at hourly counts, but I am speculating - Monday close/Tuesday might be intermediate high”
Zig also presents his SPX chart showing divergence
And the NYMO
But don’t be fooled. This can pull back and not make any difference to the IT trend by just pulling back enough to slow down the momentum before it gathers up steam again. IOW, don’t hang your short hats on anything just yet. ;-)