After a day off on Monday, I am back. Our general story remains pretty much the same. The overall market is in a strong uptrend, in the short term we may see some weakness.
Monday was a down day as we suspected, Tuesday was moderately strong. What that meant for our momentum indicators is that the slow momentum remained in nice positive TradeWinds territory, our moderate momentum dipped slightly, which we were happy to see; the fast momentum is jumping again which means it may need another recharge soon.
Here is how I think the next few days play out. Tomorrow should see some follow through to today's action, but there will be resistance to it being a run away day. By Thursday more weakness will enter the market which will bring the moderate and fast momentum indicators down in tandem. This is good because when they regain their footing and move back up it should be a strong move. Of course don't take my word for it, watch the market closely to see if this scenario begins to unfold.
We have seen some positive action in the precious metals in the last few days. If you have the gold itch, I suggest you wait a bit long to see if this move is the beginning of a new bull move for all that glitters, or just a shiny dead cat bouncing. The slow momentum numbers are very unfavorable for gold and silver so be careful.
Now check out our Top 25 Lists and TradeWinds Black Box results.
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