Tuesday, October 29, 2013

Dow And S&P500 Overbought

While tech and small caps keep going sideways, the Dow and S&P500 are heading higher. In a healthy bullmarket, you want to see tech leading. Since tech actually falls behind, this run higher in Dow and S&P is probably due to rotation and a flight to 'safety'. These indices are getting overbought, we are probably witnessing the last leg higher of this 3-week rally.

5m-chart SPY:



Daily charts DIA, SPY, QQQ and IWM:



Euro, oil, metals
The euro pulled back under 1.375, but is bullish as long as it can keep closing above 1.36-1.365.
Oil also pulled back, but is still above $98. Above $98.5, today's resistance, and it's go time.
Metals were mixed with silver almost breakeven, copper in the green and gold losing over 0.5%.

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