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A Stagnant Market as Summer Ends September 1, 2012

Posted by Tom in Thoughts.
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Hard to find much to write about when the market doesn’t do much and the pre-holiday (in the US) news / activity is low.  We’ll take a quick look at the NASDAQ Composite Index below:

Well, the longer term channel (solid blue line) still points upward with prices hovering near the top of the channel.  The shorter term trend (the dashed gray line) is also pointed upward even more aggressively, prices are about mid-channel for that trend.  Note the low volume and the congestion of price bars over the last 12 days.  Perhaps the market is “winding up” a coiled spring in here.  The question is which way will it break?  No one know, if they did, the market would be there already.   🙂   I’m watching the 3040-3050 level, which may give us a clue.

There is plenty about to happen.  The US political campaigns are beginning to kick into gear, the German High Court will be ruling on Germany’s involvement in the “EU Bailout”, and of course the political football of the “fiscal cliff” for the US budget come the end of the year (I expect no meaningful activity until after the Nov. elections).

I will be posting my client newsletter by Tuesday in the newsletter tab.  There you will find the updated Price Action and Money Flow pie charts, as well as the Top & Bottom 10 sectors; no need to repeat those charts here.  Have a good week.  Summer is closing and the market may be ready to tip its hand soon.

 

 

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