Financial Sense   Home  l  Market Monitor  l  Market WrapUp  l  Storm Watch  l  About Us  l  Contact Us

MONTHLY CHARTS

DJIA: It closed above 10500, which suggests an upside target of 10750.
A close above 10750 would suggest an upside target of 11250-11350.

DJTI: If it closes above 3800, the next upside target would be channel resistance at 4000.

SP500: Resistance at 1190-1195. A close above 1195 would suggest an upsid
 target of 1250-1270. Monthly support is at 1090-1080.

NASDAQ: It has strong resistance at 2160, and no particular fundamental
reason to break out above that level, but of course that doesn't mean anything.
If it closes above 2160, it would suggest an upside target of 2230-2250.

HUI: Resistance at 265, support at 200.

US Dollar: It is like the starship "Enterprise." It's going to places it has never been before,
and it is taking the entire world with it! My target is 60 over the next 1 1/2 years.

CRB: Support at 275, resistance at 325.

Oil: A close above $50.00 would suggest a revisit of the highs.

Utilities: Resistance at 400, support at 300.

Summary

Based upon 50 years of historical price data, advances with a magnitude of the current one experience a "momentum failure" prior to termination. A "momentum failure" takes place when price makes a higher high, yet momentum indicators make a lower high. Usually that type of combined action has given a valid warning that the advance is over. None of our intermediate-term momentum indicators have diverged negatively. They all have confirmed the recent price highs by making higher highs. So, with a number of different momentum indicators confirming price, I really do not have much to conclude upon, that at the present time the odds favor an abrupt intermediate term trend change. I do have several reasons to expect a 3%-5% decline in the near term, but no "technical" reason to expect an immediate resumption of the bear market. With lower lows lying directly ahead in the absence of an exogenous catastrophic event, that curtails investors' robust appetite for risk.

Ike Iossif

Home  l  Broadcast  l  Market Monitor  l  Storm Watch  l  Sitemap  l  About Us  l  Contact Us