The price of the Nasdaq Composite dipped from the parallel angle trend line as the time cycle completed into September. Price looks like it is trying to get back to that angle and is not far from it as of today’s close. Volume has picked up and the daily price movements have been bullish since March.
Momentum has been slowing down with the percentage price oscillator below the May highs as price continues to climb. Eventually, this move will end and I suggest traders be wary with gains they have accumulated.
Charts courtesy of Stockcharts.com
Market got a New life? or is this blow off top. % Bullishness on SPX 87 NDX 90 is almost at all time highs. Not sure where the juice will come from without a serious correction? .. If this is a new life market BuLL is getting then it must be from people running away from $USD .. but for how long? Maybe till the Feds start showing any signs to raise interest rates. which maybe a while too.
Market is overbought now. May go some higher but not much room left. The breadth of this move indicates that the next move once price become oversold in the intermediate term should make new highs.
Any bear argument sounds pathetic right now. Two things however don’t sit well with me, the volume on financials breaking out from what looks more like bearish setup? .. I see more selling there and sucker buying. The VIX has not made a new closing low since July and it’s momentum is trending higher. Semiconductors looking weaker. Something is not sitting quiet right.
So my tops for yesterday call was dead wrong, and I can see Nasdaq 2200, and SPX 1110 before this is over.