BRIEF UPDATE ON THE BROAD STOCK MARKET (2:45 pm EDT)
Today several important tech companies (e.g. Microsoft, Amazon) posted unusually high quarterly earnings that surpassed analyst's estimates. This caused a surge in the NASDAQ COMPOSITE INDEX as well the NASDAQ 100 INDEX (E-MINI) Dec. contract. This latter index was finally propelled above its high from last week so our bearish divergence signal is now negated. The S&P 500 is also making a new high for the week, but at the time of this writing (2:45 pm EDT) the DOW is still below its high from Tuesday. We will still watch for bearish divergence next week (i.e. one or more of these indices making new highs, but not all of them) for a possible signal to sell short. If we don't get it we will likely remain on the sidelines and wait for a corrective dip to buy.
Today several important tech companies (e.g. Microsoft, Amazon) posted unusually high quarterly earnings that surpassed analyst's estimates. This caused a surge in the NASDAQ COMPOSITE INDEX as well the NASDAQ 100 INDEX (E-MINI) Dec. contract. This latter index was finally propelled above its high from last week so our bearish divergence signal is now negated. The S&P 500 is also making a new high for the week, but at the time of this writing (2:45 pm EDT) the DOW is still below its high from Tuesday. We will still watch for bearish divergence next week (i.e. one or more of these indices making new highs, but not all of them) for a possible signal to sell short. If we don't get it we will likely remain on the sidelines and wait for a corrective dip to buy.
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