Hourly Chart for the Dow - Price could continue to move up here ... but based on the Tick data blue line below price chart and the green line (with the price chart) ... things need a rest. We have had a price explosion to the upside and in the near term price is overbought. Based on the indicator I would expect price to move sideways for a couple of days. Now this is not to say that the Dow may be up 200 points on Monday ... I'm interpreting what the indicators are telling us.
The short term indicators for the daily chart is also overbought at this point. The green line and blue line with the price chart show the intermediate trend is still positive and this should be the case now for a few days/weeks. We may see some weakness in price due to the overbought readings of the shorter term indicators. Friday we had a 57% down volume day with a small amount of money outflow on the markets.
The US Dollar looks to be headed lower based on the green indicator which measures the intermediate price cycle. If the dollar is lower this will give equities a shot in the arm to move higher.
Junk Debt or High Yielding Debt is showing some strength and has performed well over the last few days as well. This is a confirmation of the rally. I would expect based on the bottom two indicators that price may cool off for a couple of days. Overall the trend here both in price and money flow are positive.
One item that does worry me with the latest rally in stocks is volume. Here is a chart of the NYSE volume with a 7 day moving average in blue coupled with the S&P 500 price (black line) and volume has lagged while price has not. I would like to see strong volume if we are to maintain this price rally.
Hourly Chart for the Dow - Price could continue to move up here ... but based on the Tick data blue line below price chart and the green line (with the price chart) ... things need a rest. We have had a price explosion to the upside and in the near term price is overbought. Based on the indicator I would expect price to move sideways for a couple of days. Now this is not to say that the Dow may be up 200 points on Monday ... I'm interpreting what the indicators are telling us.
The short term indicators for the daily chart is also overbought at this point. The green line and blue line with the price chart show the intermediate trend is still positive and this should be the case now for a few days/weeks. We may see some weakness in price due to the overbought readings of the shorter term indicators. Friday we had a 57% down volume day with a small amount of money outflow on the markets.
The US Dollar looks to be headed lower based on the green indicator which measures the intermediate price cycle. If the dollar is lower this will give equities a shot in the arm to move higher.
Junk Debt or High Yielding Debt is showing some strength and has performed well over the last few days as well. This is a confirmation of the rally. I would expect based on the bottom two indicators that price may cool off for a couple of days. Overall the trend here both in price and money flow are positive.
One item that does worry me with the latest rally in stocks is volume. Here is a chart of the NYSE volume with a 7 day moving average in blue coupled with the S&P 500 price (black line) and volume has lagged while price has not. I would like to see strong volume if we are to maintain this price rally.
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