http://stockmarketchartanalyst.blogspot.com/
The daily chart did exactly what everyone said it would do if the mid-term election went the way it did, and the Fed's QE2 number was above $500 Billion...Making money the second half of the week was too easy!...Friday's candlestick closed waaayyyyyy above the upper Bollinger Band, and the market may have to move sideways or downtick for a few days until the candles are back inside the upper BB...The exciting and market moving news from last week about the election and QE2 is over, plus it is a very light week for economic reports on the Economic Calendar, and also a light week for Earnings Reports...So what's the motivation for a strong move to the upside to continue?...Many times after a breakout above a big Resistance level, the market will drop back to test that level of Resistance, so a drop back to 1195. seems possible sometime during next week...
The weekly chart broke out to a new 52 week high on decent Volume...All of the indicators are Bullish, and even though it is VERY Overbought (and has been for weeks), that doesn't mean a whole lot...Because Stochastics is an over rated indicator when it reaches Overbought conditions, since it can remain that way for much longer than many people think it can...
The Economic Calendar for next week is VERY light...There is only one red starred report (a potential market mover), and only two gold stars, which means those reports have a chance to MOVE the markets...The big report due out next week is International Trade on Wednesday at 8:30am ET, and weekly Jobless Claims numbers at the same time...Friday's big report is Consumer Sentiment for the month of October, due out at 9:55am...
http://online.barrons.com/public/page/barrons_econoday.html
(Click on the "Consensus" button to see what the market is expecting for these reports)
Stocks go UP, while the Dollar CRASHES!...And Gold, Silver, and most of the other Commodities go up, Up, UP!!!...Is this what Helicopter Ben intended with all of his Quantitative Easing?...Hyperinflation of food, gas, and other basic necessities?...This is a very interesting article that explains how the rise in equities is not such a good thing after all:
Stocks Have Collapsed in 2010 - When Priced in Wheat
http://www.oftwominds.com/blognov10/stocks-quatloos11-10.html
Don't forget that Thursday is Veterans Day!...
Happy Trading next week!...
chartaholic
zigzagman
Tom
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