The purpose of my contribution is provide timing signals for the best time to buy or sell stocks based on the overbought and oversold signals which these emotional wave create. These timing signals will allow us to have confidence when we’re in a long or short positions
Last week I recommended to stay long for the first half of the week and then expect a pullback to retest lower confluencies. Although, we did see a bearish attempt to pull this back during the middle of the week it was on light volume meaning that there wasn’t a lot of conviction behind it so the bears were only able to pullback to the 8 sma/daily. What we saw was our indicators cycle from short term oversold telling us that the bulls found higher support in this new range and are still strong and that we should move higher next week. This is more confirmation that the Tax Season sell is over. Since this cycle from oversold came late in the week I’m bullish for next week. We could see more rally after after the FOMC meeting next week. I’m looking for the Fed to hold interest rates steady, this would be sign that he’s waiting for more economic data to see what the stimulus has been since his rate cut program has been in effect. I feel that record low interest rates held steady is a continued bullish stimulus to keep this uptrend intact.
From the economic standpoint we saw that our economy is still weak but the dollar got a little bounce from the stronger than expected jobs report.
All markets are still approaching resistance. Dow Target is 13,048, Nasdaq target 2,504 and SP-500 Target is 1,440. For more info on my system please check my site . http://stockmarketreaper.net/
Until next week, May all your trades be happy,
