BROAD STOCK MARKET UPDATE (9:30 pm EDT)
In my last blog (April 20), I stated:
"The S&P 500 and NASDAQ have both broken out to new all-time highs, and the DOW seems poised to do that this week. If it does, it will confirm our bullish view. (If it doesn't, we will have a bearish divergence signal that would jeopardize our bullish view.)"
Well, the DOW did NOT make a new high last week (while the S&P 500 and NASDAQ did), so we have a strong bearish divergence signal in place. We are in the dead center of a strong general reversal zone (April 21 - 30) that ends next Friday. The DOW still has time to make a new all-time high. If it does this with the other two indices, it will be a bullish signal, but if the NASDAQ and S&P 500 do not make new highs with the DOW, it will be another bearish divergence signal. If the DOW does NOT make a new high next week, that is also bearish. We will watch this very carefully next week. At the moment, the Trump Administration's negotiations with Iran do not seem to be going well, which could trigger a market sell-off next week. I am still on the sidelines of this market.
In my last blog (April 20), I stated:
"The S&P 500 and NASDAQ have both broken out to new all-time highs, and the DOW seems poised to do that this week. If it does, it will confirm our bullish view. (If it doesn't, we will have a bearish divergence signal that would jeopardize our bullish view.)"
Well, the DOW did NOT make a new high last week (while the S&P 500 and NASDAQ did), so we have a strong bearish divergence signal in place. We are in the dead center of a strong general reversal zone (April 21 - 30) that ends next Friday. The DOW still has time to make a new all-time high. If it does this with the other two indices, it will be a bullish signal, but if the NASDAQ and S&P 500 do not make new highs with the DOW, it will be another bearish divergence signal. If the DOW does NOT make a new high next week, that is also bearish. We will watch this very carefully next week. At the moment, the Trump Administration's negotiations with Iran do not seem to be going well, which could trigger a market sell-off next week. I am still on the sidelines of this market.
RSS Feed