Market Week 46
Again new highs on every front. Most of the major indices created new highs. No retracement on the horizon so far, but yesterday’s (12.11.2019) close was somewhat a warning. Let’s see the daily charts of the indices.
The former steep uptrend line was broke with yesterday’s close on this index. We are far away from the EMA(50) blue line, which means some retracement in order to get back the averages. It can be with sideways movement until the lines getting closer. Still uptrend, but not an entry point for longs. Fear of missing out is strong in here if we create new highs.
If we are strict there was no new high in the Dow Jones Industrials. Still on the former high levels. The uptrend is intact.
Not so convincing new high here.
The resistance line still holding. The short from these levels is still valid with small stop loss. Former lows are the best entry point. Eternal sideways cannot be killed easily.
In my opinion, a healthy retracement is in order. We saw new highs without significant news. Maybe everyone waiting for a catalyst here. Not worth to guess turn arounds so it is still bullish until the uptrend lines killed. I would not open new positions but I would be skittish with my exiting ones. I am getting more bearish from these movements. No healthy green bars are seen several days ago. Be vigilant.