There is not much to say from the past posts as I still believe a major rally should be underway. What is concerning is that we might have a HS topping pattern on 2 day chart on SPX - which says we have some downside monday (and if we get a lot more downside , we will maybe head below MA(200) and further down.
But overall I believe its about to buy the dips still - and we should have more upside next week. If markets tells me otherwise and plunge below recent lows 1258 I would exit my long positions and go to cash - but what the markets looked to me were some kind of consolidation - we drifted slowly down - nothing big and 30 min charts got oversold.
QQQ looks prettiest with the inverted HS pattern and where we closed was the right shoulder. So IF and only IF this is a reliable pattern - then we are going to see a MASSIVE rally early next week.
If it fails - then it fails and we will probably head lower - but if you take look at RUT (small caps) they are WAY stronger than other indexes. Russels only down -0.6% with SPX -1.17% and QQQ -1.73%.
This tells me that this dip is a buying opportunity and higher levels should come. If Russels were leading down with -2% I would be very concerned , but for now looks good.
If we take a look at AAPL it looks nearly perfect in symmetry - with good support 325 , getting oversold now and ready to rally big next week to a pattern target of 345 - lets see , but this also indicate a big rally to come in markets.
I remain heavy long TNA 68.8 and other small caps (TNA 73-74) now so already in profits but I would like a lot more next week.
Time will tell , but I remain long markets over weekend.
Have a nice weekend and enjoy
nice charts,as ever.I still think banks might spoil the party but my best guess is a break of the March lows then a sharp rally driven by shortcovering http://www.stocktiming.com/Friday-DailyMarketUpdate.htm
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Note that back in 2009, the RUT was up 3 points on the day of the rebalancing and down 20 the following Monday. Last year, it was higher by a point on the day of the rebalancing and off 33 points over the next four sessions. Accordingly, if the Russell 2000 is exhibiting some relative strength today, I will likely be selling some of my positions in this index at the close. Harry Shiller.
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