Resistance in an Up Trend = a Close Watch February 17, 2019
Posted by Tom in Thoughts.Tags: market analysis, market commentary, stock market commentary, technical analysis
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Feb. 15, 2019 – OK, this is sounding like a broken record but the (US) market remains in an upward, bullish trend. My concern is that over the last 3 days the price action has yielded narrow range bars. This accentually shows that buying and selling are about equal with no “winners”. The volume on these bars is just a little above average but not much. If we saw higher volume I would be much more concerned. Perhaps traders didn’t want to hold anything over the long weekend (Monday is a US financial holiday).
The bottom line is while we’re concerned, we must / should remain invested for the time being. The major concern is that a major news item will come out of the blue and drive this market down 10% in a matter of hours. It could happen; right now it’s just a concern. Also we’re just at a resistance point of 7486 on the NASDAQ Composite Index (green dashed line). Perhaps a likely spot to pause or ?
There’s been some sector rotation going on with Energy & Services and Healthcare moving up while Internet and Real Estate are moving down. Again, I point out that the table below is momentum and volume driven in the short term, and thus changes rather quickly.
That’s about it, “short and sweet”. Staying the course with a close eye on price action / reaction. Have a good week. ……….. Tom ……….
Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.
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