Market Undecided July 1, 2017
Posted by Tom in Thoughts.Tags: market analysis, market commentary, stock market commentary, technical analysis
trackback
June 30, 2017 – Before I get going, I’d like to wish Canada a Happy Birthday (Canada is 150 years old this week).
The U.S. markets were lis-less and undecided this past week, as were the world markets in general. True that vacations are on the minds of many but it’s really deeper than that. There was / is a fair amount of expectations for future economic growth and some are coming to the conclusions that it may not be as significant as originally thought. Some traders are predicting another 5-8% drop on top of the current 5% drop. That would be a mild correction so no need to “jump out the window” just yet.
My new chart of the NASDAQ Composite shows the weakness in the background. The red bars indicate short term weakness and the Volume flow is steady to Bearish. Note that Money Flow remains positive / Bullish. More important are the support levels. The 6164 level was violated on a Closing price, indicating possible continued weakness, but the Lows of those bars remain intact. I would only start to get concerned if the Low of the bar where the Close violated a support level. So, I’m cautious as this market is only showing signs of being undecided. The next level down is 6097 (that’s the Low of a weekly “significant bar”.)
The table below shows sector strength / weakness in the short term. Note how Semiconductors has moved from the top to the bottom.
The bottom line is we’ll just have to wait and see if the market “decides” whether to drop any further or just go horizontal next week. The “Summer Doldrums” are here.
Have a good week. ………. Tom ……….
Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.
Comments»
No comments yet — be the first.