Over the past week, the indexes formed divergences with a few indicators. Usually this indicates that we might be going up for a couple more days until the divergences closes. Hence I believe the indexes are now going to move up towards their respective 50 day moving averages. (red line) I still stand by my previous analysis of the indexes being in a downtrend and we might be making new lows by the end of March. The target for this current downtrend will be the March 09 lows.
Dow Daily chart
S&P Daily chart
NASDAQ Daily chart
In the short term, we would be up for the next few days and most probably be up for this shortened week too. I will be in Sabah for the week and I will have to see if the hotel that I’m staying has internet access. Otherwise I wish all my trading buddies good health and lots of luck this new year! Happy Chinese New Year!
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