A Market Timing Report based on the 1-17-2014 Close published Monday January 20th, 2014
The SP500 Index (SPX, SPY) has not broken down yet, but it did fail at a double top at the end of the week. If 1823.73 holds it on the pullback (1-06 low), we’ll have a reverse head and shoulders set-up for a further rally.
Another logical place for a pullback would be 1815.52, the 1-13-2014 low. By the time it reaches that point, we’ll also be flirting with the 50 day moving average, which COULD provide support. There ARE buyers left in this market still as evidenced by Intel’s (INTC) action this past week. It could have easily fallen to it’s 50 day moving average but did not after a very soft forecast for the coming year. It fell and then bounced.
SP500 Index Chart:
SP500 Index has not broken down yet, but did double top last week.
As mentioned last week, investor sentiment is starting to flash caution signs. I will cover my thoughts on investor sentiment for free subscribers by posting it tomorrow morning. Be sure to read it. You can access my thoughts after getting the password here: Free Subscription to My Newsletter and access to my latest comments I’ll send you back the password to the access page and the monthly newsletter in the same email.
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Look for updates on the main chart tracking pages this week as I feel they are needed and comments via Twitter.
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