Seasonally Strong Period, Don’t Fight It
In spite of the fact
the market remains overbought…in spite of the fact bullishness
is running rampant…in spite of the fact speculation and frothy action are
in the air, the market refuses to budge. I can’t even call what we have been
seeing a correction as the major averages have hardly budged. Instead of
calling it a correction, you can call this a rotational consolidation. So
far, it is nothing but positive that the market, after a sharp run-up since
the election, has refused to pull back.
the market remains overbought…in spite of the fact bullishness
is running rampant…in spite of the fact speculation and frothy action are
in the air, the market refuses to budge. I can’t even call what we have been
seeing a correction as the major averages have hardly budged. Instead of
calling it a correction, you can call this a rotational consolidation. So
far, it is nothing but positive that the market, after a sharp run-up since
the election, has refused to pull back.
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We are now entering a seasonally strong
period…from now into the middle of January. I would not fight it.Â
Anything can happen but until my technical indicators change, I have to give
the market the benefit of the doubt. There are some areas that have
corrected more than others but there has been very little technical damage
done.
period…from now into the middle of January. I would not fight it.Â
Anything can happen but until my technical indicators change, I have to give
the market the benefit of the doubt. There are some areas that have
corrected more than others but there has been very little technical damage
done.
Â
On the upside, a move above 10,645 DOW…1198
S&P…and NASDAQ 2165 would lead to another new leg up. Since the recent
range is tight, here is support on the downside…10,420…1173…2095.
S&P…and NASDAQ 2165 would lead to another new leg up. Since the recent
range is tight, here is support on the downside…10,420…1173…2095.
Gary Kaltbaum