Daily charts for the Dow
Weekly charts for the S&P 500
Daily charts for the S&P 500
Weekly charts for NASDAQ
Daily charts for NASDAQ
All 3 indexes broke to new highs on Friday. This is one of the most bullish rallies ever. It looks even more so for NASDAQ, which has rallied past 70% since its 2008 bottom. I have 2 significant resistance levels on the S&P at 1225 and 1250. This would be 11250 and 11470 on the Dow. The market is poised to make a new high to these levels before there can be any market reversals. The previous high of 1210 on the S&P and 1110 on the Dow will now be support for any price movement.
Daily chart of GS
It is interesting to note that GS is forming a pennant on daily charts. Any break of the pennant at support at 157 and resistance at 160 will indicate that GS will be moving around 20 points down and up respectively.
Daily chart of XLF
It is interesting to note that the finance sector did not make a new high along with the market indexes. It actually seems to be continuing its trend down but we shall see more in the next few days. GS will be a major mover of this index.
Conclusion:
I do not think the rally will last more than a week. We should be finally making a correction starting from sometime this week. However I will be monitoring XLF as the sector had been leading the market and should lead the market in the corrections too.
Daily chart for Crude Oil
Crude is still bouncing off support and its 50 day moving average at 82.50. It’s interesting to note how strong resistance became strong support. I believe crude will be tanking over the next few days to 79. We shall see how it turns out.
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