The recent consolidation in the market has been argued as merely a pause before the next leg higher to 1750, 1800, or even 2000 on the S&P 500 Index. Alternatively, it can be seen as a sign of a churning dip-buyers (not rewarding them like the market has up to this point) and thus a topping process.
What we do know is that the underlying momentum is becoming far more selective, as several leaders are pausing or lagging, while laggards like the materials make bounce attempts.
In the latter part of this week, as you can see on the updated IWM (Russell 2000 Index ETF) chart, first below, of the 30-minute timeframe, there has been a whole lot of flopping above and below the $104 level. Neither bulls nor bears have been able to sustain a momentum move since Wednesday. It now appears that $104.50 and $103.50 represent a one-point bracket in this ETF to watch for a break.
On the second chart, below, keep an eye on Tesla (a momentum leader which obviously continues to stay strong) on this 30-minute timeframe since its earnings gap higher. To my eye, a move up through $156 and especially $159 sends the numerous bears in the name on the run again. And below $150 you can start to talk about a gap-fill.
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Lou Basenes’s comments on PAMT quite impressive . Just bought a ton .
Nice one.
too funny
Haha thanks Juice