Dow Jones 30
The Dow Jones 30 initially rally during the week but to get back enough the gains to form a candle the looks roughly like a shooting star. I don’t think that this is a major breakdown waiting to happen, but what I do think happens is that the market could drift towards the 25,000 level again. I would love to see some type a significant pullback so that I can take advantage of value, in a market that has plenty of reasons to go higher, just perhaps has gotten a bit of ahead of itself. I believe that the value proposition below is quite enticing, as corporate profits continue to gain in America, just as the US dollar has been following a downward trajectory.
NASDAQ 100
The NASDAQ 100 initially fell during the week but then turned around to rally significantly. We are pressing a significant level in the form of the 6050 handle, but I think that breaking above the top of the candle is a buying opportunity, and I also recognize that the NASDAQ 100 may lead the way for other indices in America finally. It has been a laggard, but it looks like the buyers are starting to become a bit more aggressive. If we break down below the bottom of the candle stick, then I think we go looking towards the 6500 level underneath where we should find a massive amount of support. I like buying dips, but this index might be the one that doesn’t dip.