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Not really just jitters at the top. We have all experienced some jitters at a top in our life – on a big day. But recent market entrants could feel a little cautious.
When I say it is just jitters I mean that is all it is at the moment. I qualify this as further out we don’t know and I just feel - well, cautious also. And so I watch and assess week by week. Not day by day as this market still has ‘ticker’. Has had ticker.
Let’s look at the DOW first:
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The DOW is possibly just going into a minor wave four pullback. And it is possible we have not seen a final ‘blow off’ which commonly happens at the top.
The weekly and monthly DOW merely suggests a deeper low further out. No surprise.
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The S&P 90 daily suggests just range trading:
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And the 300 daily merely confirms this:
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The weekly S&P is similar to that of the DOW in that it calls a significant pullback and that is what you would expect after such a run.
So let’s look at the Australian market:
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The weekly is telling us a new high is still to happen:
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But I will make that call as we see the next few weeks unfold.
We could look at many other international equity indices but this had been very much a USA driven rally and we thus need to look to the US bourses
for direction.
Enjoy the ride
Tom Scollon
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