jump to navigation

At the Top of the Channel September 2, 2018

Posted by Tom in Thoughts.
Tags: , ,

Aug. 31, 2018 – We’re at the top of the “Long Term Channel” (dashed gray lines) again and this is where this market typically pulls back.  Think of it as 2 steps forward and one back.  So far the pull backs have not been significant and the net progress continues.  Things looks fairly positive on the chart below.

Market Sentiment is Bullish, Money and Volume Flows are positive / Bullish and we’ve broken above the “Short Term Channel” (purple lines).  Of note is the upward move for price support to 7976 for the NASDAQ Composite Index.  Not much else to say except a pull back here would not be a surprise.

What is leading the market higher (in the US) are: Healthcare, Small Cap. Growth stocks (in general), Consumer Services, Technology, Biotech and Internet sectors.  What will be interesting is if we see leadership broaden beyond technology based sectors as we head into September.  Also, when a down blip occurs, how will these sectors react?  Will the sell off be shallow & brief or severe on high volume?  That will give us a key to the overall heath.

Right now I’ve got to “go with the flow” and the flow remains positive in the near term.  Have a good week.    ………….  Tom  …………

Price chart by MetaStock; pie chart. Used with permission.


No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: