Bulls managed to stay above 1400 which I mentioned as an important level for this weeks close. This is obviously a good thing. I will not do much writing, I’ll let the charts speak for themselves.
NYUD, this chart has been bothering me for some time now and it didn’t get more love this week.
SPX mid term trend is still up. money flow pattern is weak for being a “up trend”.
NATV:NYTV has worked quite decent over the past 3 years and according to this chart, a significant top is in within 3-4 weeks. Can not also exclude that we are at a top right now.
NYSI signaling weakness
VIX, not a very strong signal of weakness but non the less it shall be noted..
SPX closed the week with a red candlestick. There could be a long term double top in the forming but we could stay at this level for several weeks before a major pullback.
All in all, I’m not sure what next but I’m still guessing on a ~1390-ish test next week. I have to see the action on futures for next call. Several charts are also suggesting some kind of a market top is close but it could take up to 4 weeks before the decline starts. Try to stay open minded since this is not a free market. Technical analysis is a measurement tool and it will not build a house on its own, it is just a tool in the box helping get the job done.
Expected range next week: 1380 – 1440.
Trading suggestion: the mid term trend is still up and it is generally a good idea to trade with a longer term trend. We should expect range trading next 1-2 weeks and profits should be locked in at resistance & supports (levels coming on a daily basis EOD). Since there are several signs of weakness, aggressive traders can take short positions at resistance levels. Also hedges could work out nicely over the next weeks. No matter are you bull or bear, remember to use stops loss orders!