Market Indexes: DJIA, S&P500 new All-Time-Highs
SPX Candle: Higher Low, Higher High, Higher Close; trend candle
FED Posture: Quantitative Tightening (QT)
Yes, the market as measured by the S&P500 did make new all time highs today. This on the news of a budget vote in the Senate. We counted five waves up yesterday from the low. We counted another five waves up today to only a 1.27 times the first five-waves up. Why not 1.62 times the first wave up? Besides the fact that Neely tells us to be cautious about calling an impulse when there has not been a 1.62 extension, I thought you might be interested in this clear and indisputable fact.
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| Daily $VIX - Volatility Index |
The above chart is now indicating that the $VIX has not made a lower all-time low as the stock market is still reaching for new all-time highs! We can only say this is true at this time. Could it change? Sure. But ...
This is what one would 'expect' to see near a significant high. Also, note today we have the S&P candle closing higher, and the $VIX candle closing near it's high - not near it's low. Further, Ira Epstein might note that the $VIX has 'positive bias' because it's candle did indeed close over the 18-day SMA. And, the narrowness of the daily Bollinger Bands might be indicating an impulse soon to happen.
We may have some more to say about the stock market over the weekend. For now, have a very good start to your weekend!
TraderJoe
Salut joe
ReplyDeleteRien n'est sure
On monte on monte mais jusqu'où ???
Did you read yesterday's post?
ReplyDeleteOui 2582 le haut?? C'est ça
ReplyDeleteET, Fed posture might have to be qualified by what the Fed says and what it actually is doing, see https://wolfstreet.com/2017/10/20/is-the-fed-getting-cold-feet-about-the-qe-unwind/
ReplyDeleteSure, but this can go on for a very long time. Why not just stay with the trend until it is not going your way. Use stops to protect yourself, and dont watch the time all the time.
ReplyDeleteI don't think stocks have ever crashed from an ATH high. Crashes occur in 3rd waves and C waves, not 1st waves and A waves.
ReplyDeleteWhile Friday was another ATH, the breadth was weak all day until they ramped it up in the closing minute. However, it still wasn't enough to bring the McClellan Osc above the zero line. NAZ and NDX struggled all day, and they have a very strange 3 day candle pattern. Also their candle pattern for the past 3 weeks looks similar to the 3 week pattern that ended at the 12/04/15 weekly.
ReplyDelete