SHORT TERM: POSITIVE
Bah humbug! Bonds were up big today again, Crude oil down some more, stocks gap up at the open, (which they have been doing nearly everyday), and then are sold off all day. No, it doesn’t make any sense to me either. Technically, all four indices are again extremely oversold short term. So we are due for a bounce up tomorrow.
The 15 minute chart of the SPX (posted SPX122705) displays a retest of the recent lows, which would appear to be a flat wave 2. It should turn up higher from here. The NDX displays a diagonal triangle, talked about earlier, peaking at this mornings high, with a negative momentum divergence. After running into resistance at the 1690 pivot again this morning, the NDX sold off breaking through the 1671 pivot, and then vacillated just below it to close at 1668, (NDX122705). Keep in mind that the indices are extremely oversold short term. Look for a bounce tomorrow. Best to your week!