Cobra's Market View Private Messaging System shows:
SHORT-TERM: INDU DOWN FRIDAY AND FOLLOWING MONDAY WAS A BAD SIGN, SPX 3 CONSECUTIVE DOWN DAYS WAS A BAD SIGN
As mentioned in today’s After Bell Quick Summary, SPX still stuck in a trading range so the short-term direction is unclear. However, there’re two more bad signs I’d like your attention. One is not about short-term but I’ll just put them in this short-term session.
INDU was down last Friday and today (following Monday), according to Stock Trader’s Almanac:
For over 30 years, a down Friday followed by down Monday has frequently corresponded with important market inflection points that exhibit a clearly negative bias, often coinciding with market tops and, on a few climactic occasions, such as in October 2002 and March 2009, near major market bottoms.
SPX has been down 3 days in a row which should never ever happen in a strong uptrend. The chart below highlighted all the first occurrence when SPX had 3 consecutive down days since the March 2009, you can see a clear negative bias ahead.
INTERMEDIATE-TERM: COULD BE WAVE 5 UP TO SPX 1300+, PIVOT TOP COULD BE AROUND 01/05 TO 01/12
See 01/07 Market Recap for more details.
SEASONALITY: NO UPDATE
See 12/31 Market Recap for the January seasonality chart.
HIGHLIGHTS OF THE OTHER ETFS IN MY PUBLIC CHART LIST
|CHINA Weekly||UP||Should have set the trend to down from up but I’ll see how the market rebounds.|
|EEM||*Testing trend line.|
|XIU.TO Weekly||UP||Weekly Bearish Engulfing, be careful.|
|TLT||Breakout, so TLT could be bottomed. Need watch the trend line resistance though.|
|FXE||Clear breakdown, the downtrend resumes.|
|GLD||Could be an Ascending Triangle in the forming.|
|GDX||12/17 S||1-2-3 trend change confirmed, so GDX could be topped. Be careful about gold itself.|
|XLE||06/15 L||*testing trend line.|
|XLF Weekly||UP||Testing resistance which also is multiple Fib confluences area.|
|IYR Weekly||UP||Home builders are lagging.|
|XLB Weekly||UP||BPMATE is way too overbought.|
- Please make sure you understand how to use the table above. The purpose of this report is to provide info so contradictory signals are always presented.
- Conclusions can be confirmed endlessly, but trading wise, you have to take actions at certain risk level as soon as you feel the confirmation is enough. There’s no way for me to adapt to different risk levels therefore no trading signals will be given in this report except the mechanical signals such as SPY ST Model.
- * = New update; Blue Text = Link to a chart in my public chart list.
- Trading signals in OTHER ETFs table are mechanical signals. See HERE for back test results. 08/31 L, for example, means Long on 08/31.
- UP = Intermediate-term uptrend. Set when I see at least one higher high and higher low on weekly chart.
- DOWN = Intermediate-term downtrend. Set when I see at least one lower high and lower low on weekly chart.