Most of the indicators on the Dow hourly chart remain overbought.
On the daily chart the green line which really measures the intermediate trend remains on an upswing. The blue line which measures the money flow remains overbought and the top of its cycle (I've included the actual money flow behind it). The short term indicators below are overbought. Friday we had lower volume but the NYSE still managed to post a 63% up volume day. Money flow was a different story we did have an overall outflow of cash. I would wait until the blue money flow line cycles back to the bottom before buying ... this doesn't mean that price will follow ... but I had rather buy when I have a lot of buyer behind of me wanting into the market vs. just me being the only one bringing cash to the market.
Here is a view of the weekly chart. The green line which measure the weekly view of price cycle looks to be turning up.
I still think its all going to come down to this ... is the government going to continue to debase our currency to support price re-inflation or are they going to encourage a strong dollar ... the latter will spell weakness for the market for an extended period of time. Short term the dollar looks to be wanting to rally a little ... this is based solely on the bottom two short term indicators.
I will leave you on this note ... volume still has not supported the latest price action. It is lagging very badly. The only positive I can give you on this is that the large commercial money has yet to really dipped their toe into the market and if that is ahead of us it would be a big positive for the market.
Most of the indicators on the Dow hourly chart remain overbought.
On the daily chart the green line which really measures the intermediate trend remains on an upswing. The blue line which measures the money flow remains overbought and the top of its cycle (I've included the actual money flow behind it). The short term indicators below are overbought. Friday we had lower volume but the NYSE still managed to post a 63% up volume day. Money flow was a different story we did have an overall outflow of cash. I would wait until the blue money flow line cycles back to the bottom before buying ... this doesn't mean that price will follow ... but I had rather buy when I have a lot of buyer behind of me wanting into the market vs. just me being the only one bringing cash to the market.
Here is a view of the weekly chart. The green line which measure the weekly view of price cycle looks to be turning up.
I still think its all going to come down to this ... is the government going to continue to debase our currency to support price re-inflation or are they going to encourage a strong dollar ... the latter will spell weakness for the market for an extended period of time. Short term the dollar looks to be wanting to rally a little ... this is based solely on the bottom two short term indicators.
I will leave you on this note ... volume still has not supported the latest price action. It is lagging very badly. The only positive I can give you on this is that the large commercial money has yet to really dipped their toe into the market and if that is ahead of us it would be a big positive for the market. 
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