August 3, 2010

Market ranged within narrow pivots on low volume

Short-term: 4 yellow – tending yellow
Intermediate-term: 2 green, 2 yellow – tending yellow/green
Stock targets: 45% swimming, 34% neutral, 21% sinking

Major indexes are still eating through resistance but it does look like they will break through it. The breadth is pretty impressive even if most stocks are just driven by top-down index buying. This could resemble the Feb/Mar/Apr climb again — built on nothing fundamental but still with an upward bias that will not be stopped. Buyers/bulls are in charge. Don’t expect anything to change until Labor Day unless there is some external shock.

However, this move in the US markets is mostly because of the dollar. International markets are definitely healthier and far preferable. I’ll look at them tomorrow.

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