Market Musings for Dec 21st, 2006
DOW is in a continued uptrend. On Dec 14th, it broke out a potential double top. As per my trading rules, I will wait for William %R to drop around -80 before looking for long entries. At this time Dow is quite overbought to justify any long entries.
Trendiness: Hourly - Uptrend Daily - Uptrend Yearly - Uptrend
NDX is in a horizontal consolidation. It is right now at the lower portion of that consolidation. William %R is almost to -80 and looking for long positions for tomorrow would be a good idea. Enter long only with market strength. On the other hand a little weakness in the market tomorrow would position us perfectly for good long pullback entries the day after.
Trendiness: Hourly - Chop Daily - Uptrend (resting) Yearly - Uptrend
SPX is in a continued uptrend and in synch with the Dow. However it needs to get a little more oversold before we can look for long entries
Trendliness: Hourly – Uptrend topping off Daily – Uptrend Weekly - Uptrend
Conclusion: Only NDX looks poised to move up tomorrow but given the condition of the other two indices, I will be sitting on my hands and not look for any new entries.
