Stock market has rallied across the board. The Dow Industrial Average is now above 9000 level. The index is currently at Jan 2009 level.
Technically, the charts are looking better. Just a few weeks ago, there was a possibility of a sell-off based on the head and shoulder pattern. That did not materialize. And when the pattern failed, the market rallied. The reverse seems to be happening. An inverse head and shoulder is now in the picture.
The ADX chart is showing the development of an uptrend, with +DI above –DI and ADX moving towards 30 levels.
MACD is indicating a bullish trend as well with the indicator above its signal line.
RSI is now at overbought levels but it an uptrend situation, market can stay at overbought levels for longer periods.
Based on the monthly charts, the 50% Fibonacci retracement level is at 9176 and 61.8% retracement level is at 9825 level. Market needs to scale these 2 levels for up move to continue.
Let’s see if the market is able to stay above 9000 level next week.
Happy trading!
1 comment:
The dow jones is a poor representive for US stocks.
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