Market Musing for Dec 22nd, 2006
DOW today had a healthy pullback in the continued uptrend after the breakout. It is setting up nicely for buying conditions. A little more pullback from here would be ideal but then market is a sloppy kid. Lets look to enter long swing trades with market strength.
Trendiness: Hourly - Topping uptrend Daily - Uptrend Weekly - Uptrend
NDX also has now come down to the lower part of its 3 week long trading range. Will it bounce from here or breakdown? I will lay my bets on a bounce since it is now in some decent oversold territory and the primary trend is still up. Along with the other indices this also looks poised to bounce back.
Trendiness: Hourly - Chop Daily - Topping Uptrend Weekly - Uptrend
SPX on the other hand is in a very strong uptrend and exhibiting a very healthy pullback here. All poised to resume the uptrend although it might see one more down day before setting up perfectly.
Trendiness: Hourly - Downtrend Daily - Uptrend Weekly - Uptrend
Conclusion: All in all the indices are looking much healthier for long entries. They are not in the best situation to start going up, but they probability of that happening is rising. For tomorrow I will be actively looking for long entries. If the market goes up the entries should trigger otherwise the market may get more healthy tomorrow. Yum! Yum!
