Nice week.From y last "
S&P 500" post you may see that I expected some a correction and we had it. Yet the longer-term up-trend pushed the stock market higher by the end of the week. (refer to my 1-year technical analysis in my "
New Highs/Lows" post on August 12, 2008 and my "
DJI" post on July 20, 2008).
My outlook over the longer-term stays unchanged. The same as before I believe that the high volume surges in June-July 2008 has power to push the Nasdaq 100, S&P 500 and DJI indexes and the whole market much higher.
With shorter-term, I only may give one advice monitor charts on the daily basis. For those who analyze charts the Monday-Tuesday slide should not be a surprise as well as Thursday-Friday recovery was clearly defined by the technical indicators. If today my 60-day technical analysis points to the higher odds of the further recovery (see chart below), it does not mean the the same technical indicators will be bullish the whole next week. They could change from bullish into bearish any time during the week. That's why I always say "do not trust my judgment, do your homework yourself and do it on regular basis. You skip it, you lose it. If you skip and did not lost that mean that you were lucky and next time you may lose even more...".
Ok, back to the 60-day chart I may say that all three indexes S&P 500, Dow(30) and Nasdaq 100 have almost similar sentiment on all technical indicator:
- SBV - Bullish - The SBV is moving up;
- MVO - Bullish - the last high volume surge is red - during the price decline;
- Advance-Decline Issues Oscillator - Bullish - The AD Oscillator is on up-side;
- RSI and Stochastics - Bullish - The RSI and Stochastics are above70 and 80 levels respectively;
- MACD- Bullish - The MACD is advancing;
- McClellan Oscillator - Bullish - The McClellan Oscillator is on its way up.
Chart 1: DJI 60-day chart with elements of technical analysis
