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At a Make or Break Point April 22, 2018

Posted by Tom in Thoughts.
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April 20, 2018 – This market appears to be at a “Make or Break” point, in that it stopped at a resistance point (near 7332; NASDAQ Composite Index) and my Wyckoff “bar strength” indicator has (finally) given a strong bullish reading.  The resistance point goes back to early February where we had a “significant weekly bar” which is where buying last came into this market (blue line).

While Volume & Money Flow indicators are now looking more bullish but I think we need a confirmation before we get too optimistic.  A close comfortably above 7332, especially on increased volume, would help.  While I’m cautiously invested now, I still have cash to deploy and I’m thinking that we’re close to putting both feet back into the water.

This is a big week for earnings announcements so that will have a large bearing on how the market moves from here.  I am “in” Oil & Oil Services and well as Precious & Basic Metals.  Both Japan and European sectors merit attention.  While the US Technology sectors have improved, there still remains concerns especially in the Semiconductor sector.

So this week should provide us with a sign of breaking out above this resistance or a failure which would usher in concerns and lower prices.  We shall see.  Have a good week.  ………….  Tom  ………….

chart by MetaStock; used with permission

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