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Resistance in an Up Trend = a Close Watch February 17, 2019

Posted by Tom in Thoughts.
Tags: , , ,

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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