Monday, November 28, 2016
SPX, INDU, BKX: Trending Markets are Boring
Well, I hope all my readers had a pleasant Thanksgiving, and remembered to give thanks for whatever it is that they're thankful for, in the spirit of thankfulnessicity. I do believe it was Napoleon Hill who taught that thankfulness/gratitude is one key to achieving and maintaining abundance. And (a few years before him) so did Jesus, for that matter, by saying: "For unto every one that hath shall be given, and he shall have abundance: but from him that hath not shall be taken away even that which he hath." My interpretation of that has always been that it makes the most sense in the context of attitude. (Apologies if I've offended anyone who associates the Bible with someone they may know who's particularly obnoxious -- that's like associating all of America with one particularly obnoxious citizen, and a bit too small-minded for my personal taste.)
So far, SPX has continued holding all relevant support levels, so there's as yet nothing for bears to get too excited about there, however, we do have INDU and BKX testing resistance levels -- and INDU is doing so in an extremely overbought condition, as we'll see on the upcoming charts. The problem bears do need to keep in mind is that, so far anyway, resistance hasn't done anything other than pause the rally each time. There's no such thing as permanent resistance in a bull market.
Let's start with SPX's near-term chart:
Bigger picture, SPX has recently cleared a trend line that came into play quite frequently over the past few months:
INDU reached its next target zone -- we'll see if that offers anything in the form of resistance:
And finally, BKX has now almost-perfectly tagged the intermediate confluence I mentioned a while back:
In conclusion, there's nothing to do in a market like this but follow the trend until such a point that the market says we shouldn't. So until we see an impulsive turn lower, there's no compelling reason for bears to come out of the shadows. Trade safe.
Posted by PretzelLogic at 4:39 AM