Massive Overhead Resistance–But Here’s The Good News
Nothing really bad to say about the
short-term action in the market right now. The market is putting up a
fight…and it’s about time. Maybe volume is a little bit suspect, but hey,
you can’t have it all.
Last Monday, we told you that the market finally
had a chance to move higher. Not only has it moved higher…but we think there
is a chance that this move has a chance to go higher than we even thought.
Here are some things we are seeing.
The A/D on a daily basis is improving. We loved
Monday’s action. Even when the DOW was headed into negative territory late in
the day, the A/D on the NYSE was almost 2-1. We have taught you throughout the
years to always dig deep into the market as the headline numbers don’t always
tell the true story.
FINANCIALS continue to catch a bid. This has been
going on for the past couple of weeks. So far, so good.
NEW HIGHS are expanding and NEW LOWS are
contracting. That’s a change.
Notice what words are italicized. Right now, it
is crazy to look past what is happening right now. If we continue to see
action like Monday, the market will only go higher.Â
Overall, there is still plenty of damage to repair
and the tape remains incredibly split. We would continue to take your time
with your probing as the market will be open tomorrow. There is still massive
overhead resistance that the market needs to work through. The good news is
the market is putting up a fight.
Gary Kaltbaum