Major indices breakout
Gary Kaltbaum is an investment advisor with
over 18 years experience, and a Fox News Channel Business Contributor. Gary
is the author of
>The Investors Edge. Mr. Kaltbaum is also the host of the nationally
syndicated radio show “Investors Edge” on over 50 radio stations. If you
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“After scanning the market, I am
cleaning the slate. When I see things pull back over a 2-week period
only to watch the 2-week pullback fully erased in 1 hour, it tells you there is
some power in the move. If this is for real, we will get the breakouts
mentioned. As usual, we will take it one day at a time. For now, the market made
a nice kick save and looks to be back on offense for the near-term. Don’t ask me
what the definition of near-term is right now. Of course, I have both eyes wide
open for changes. More fun to come.”
That is what I wrote after last Tuesday’s action. It was very
tough for me to write that as the few weeks leading up to Tuesday were nothing
more than a slow bleed in the internals. Use this as a lesson to you as budding
technicians. Go with what you see today. Today always trumps yesterday. When I
saw Tuesday’s power, I was not about to sit there with the same thoughts about
the market.
Here was another line from that report.
” What we have to watch for now is whether the major indices
can now break ABOVE recent resistance. I will be watching S&P 1276…DOW 10959
and the NASDAQ 2278.”
While the DOW is sitting at that level, other major indices
have broken out. ..and it has been a 4 day party. Notwithstanding any short-term
pullbacks that are definitely due, here are the positives:
Volume has been very heavy on the move. Bears will say it is
only new money coming in at the end of the year…but what happened last year at
this time?
New highs expanded markedly…meaning a good number of
breakouts have occurred.
Advance/declines are finally in gear after laboring for weeks.
WORLD MARKETS continue to cook. They have hardly taken a
breath.
I am going to leave it at that. As usual, this past week
caught many by surprise. Coming into the week, it would have been my last
outcome but I knew Tuesday’s action changed the playing field. Now it’s time to
start crying over the woeful play by the Giants…and I was so looking forward
to my trip to Detroit.
Gary Kaltbaum