Well, we took a run at the 900 area on the S&P, but the short term stochastic is deeply overbought.
Here’s a 20 minute chart of the DOW, you can see that a sell signal is about to be triggered on the stochastic. You can also see that we’re coming to the apex of the purple lined triangle soon and that we just made a nice little 3 wave move into and are now coming back down.
I’m thinking we’ll get just enough of a pullback to bring the oscillators down and then we can resume rally mode if we’re going to. You can see that if the pullback here makes it to the 8,600 area of the chart, it might present a decent long entry point if you don’t mind riding out the games that you know have yet to be played in the 920 area.
BTW, gold reversed course sharply from last night and is now higher. If GLD breaks above 87, that would be bullish in the short run, but keep those overbought indications in mind...
Also keep in mind that the markets are closed tomorrow for New Year’s Day.
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