Tuesday, March 5, 2013

03/05/13: looking for small pullback tomorrow, Dow All Time High, new SPX 5Y high today

Markets roared out of the gates today.  DOW opened with an all time high and the SPX made a new 5Y high once again.  Not surprised really as I've been saying several times now OBV was indicating a price higher than 1530.  What would have been surprising is if we never made it to 1530 again.

Now that a new high is in place (and in fact a new all time high for the Dow), what's next?  Can the SPX reach a new all time high to avoid a serious negative divergence?

Currently I am still bullish for this week however I just don't think we can beat all time highs on the SPX this go around.  Expecting a small pullback tomorrow to the low 1530s before the ending wave v of this wave.  It ought to take us near 1550 or higher...possibly to 1560 original target.

CCIs are back near monster levels especially the CCI 233 on the hourly.  However, we have a rising wedge developing that is targeting completion March 8.  CCIs support lines are also all targeting March 8.  Coupled with the fact that March 8 is also a fib trend change since the 1530 high, I am on the look out for a potential ending wave v here.

No comments:

Post a Comment