Now back to the market... we will keep it very simple and easy with one chart to view. Any proper analysis starts with a macro look at the market and for this we will look at the Dow Jones and it says it all:
1) The index reached the top of it's trend line and reversed. Until it can break above we can not get excited.
2) The stochastics are overbought AND reversing. The higlighted blue circles show that this pattern holds true for the market reversing it's current upward trend. The circle highlighted in RED shows where the stochs reversed back up relatively quickly and even at this point the market still could not get going.
3)MACD is headed back down
4) The DMI made a positive crossover which is great for the market but it looks like we may see it cross back down once again.
There you have it 5 negative signs. If the market could show some strength this week on decent volume then we could possibly see a SCREAMING buy. At this point though..keep your powder dry and wait from the sidelines unless you want to take small positions on the short side.
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