Friday, November 18, 2016
BKX, INDU, RUT, SPX: Longer-term Views of the Charts
Today we're going to look at a few larger views of markets, but I'm going to let the charts do most of the talking.
Let's start with the long-term BKX chart, which I've only updated a handful of times since -- holy cow -- January 2013 (see bottom-most annotation). There may be a correction pending, since BKX is challenging intermediate resistance, but by all normal rights, it's hard to imagine this BXK pattern not ultimately continuing higher toward black V. So, even if there is a correction soon, odds are reasonable that it will be a buy op.
Next is RUT, which is also challenging intermediate resistance:
INDU is challenging a resistance zone as well:
And, of course, so is SPX, in the form of the all-time-high:
In conclusion, multiple markets are challenging intermediate resistance zones. Normally, we'd expect some sort of reaction from those zones, and thus be on the lookout for a correction to begin soon. As I've said for quite some time, though (sometimes directly, sometimes indirectly), it's worth a reminder that the odds are good that we're still in a larger bull market -- so, from our present vantage point anyway, it still appears that if we do have a correction soon, it will likely end up being a buy op in the long run. Though, if we are in the midst of fifth waves higher, maybe not such a great deal in the LONGEST run, if you catch my drift -- but buy ops for the directly foreseeable future, anyway. Trade safe.
Posted by PretzelLogic at 4:21 AM