short term alert: take some profit?

The last post of a short term weakness didn't happened (or it was very brief) as the medium term rally continued higher. Currently there are more hints of weakness as recent speculative stocks and popular stocks (Apple, Netflex, Google & etc) had been unable to rally higher despite the major indexes making new monthly highs. A strong rally since early September so good time to take some profit and see happens next.

short term alert: move down for now

Stock market looks short term overbought since the beginning of the week. Unsure if this would result in a brief pause and then powering higher or a move down toward the 1050-1070 level for the SP500. Looks like it could be the latter... a move toward the 1050-1070 level as the +1100 level is proving to be a tough resistance.

medium and short term revisited

The SP500 is at important support levels that I expect to hold and will drive prices higher. A potential inverse head and shoulders pattern is developing and if it does pan out then I look for the SP500 to break above its June and August highs... above 1130. Whether the old April highs of above 1210s will be challenge is a big maybe but I'm not anticipating it yet.

short term rally?

I'm looking for a short term rally to start either this early or mid week. But it looks like the lows could had been established this Monday morning. Whether the SP500 and Nasdaq will be able to rally to or above the resistance levels of this month August remains uncertain but I should have a post on my opinion at that point.

medium and short term revisit

While I have been bullish for the past month there are some hints that this month long rally higher could stall if the stock market can't break above current resistance levels (SP500 1130+ and Nasdaq resistance above 2310+.) If the stock market stalls then there could be a trading range behavior (SP500 1040-1130 and Nasdaq 2140-2310) for the next couple months. But a decisive break and hold above current resistance levels should reinstate the bullish stance I had for the past month. So this upcoming week will be pivotal.

short term outlook

Like the 2nd week of July, the short term outlook is overbought with some consolidation or correction to be expected. The first pullback during the 2nd week was within the 2% to 3% as I was anticipating. This current pullback could be the same BUT there's still possibility of a 4% to 5% correction.

Nevertheless the strong rally off the early July bottom has the market internals hinting much higher prices for the medium term...for the coming months.

Looking for a medium term buy setup

It's been about a month since last post in which a short term setup for a bottom was expected. Turned out there was four short term setups...a rally, a correction, a rally, and finally the current correction. At that time I questioned and doubted a medium term buy setup due to the January Effect. Unless the SP500 rallies back above 1074 (January monthly close) tomorrow June 30th then the January Effect will be full-filled.

The current correction have probed below the SP500 1040 support levels. No doubt I believe the SP500 will go down more before an important medium term and possibly a long term bottom will be established. This is a large bottom range but I'm looking for buy entries around the SP500 1000-1040 level and this is where I'm looking for a medium term bottom to occur. From these price level I'm expecting the SP500 (and stock market) for the rest of 2010 to attempt to rally back up, at minimum, toward the recent highs set in April.