The last few days have seen the market largely going nowhere, no doubt waiting on more Fiscal cliff news, but the charts are beginning to look more positive towards a continuing move to the upside, although it is tentative. We have a 20/50 dma crossover to the upside, backed up by various indicators. The potential negative is that the FTSE is now facing resistance and the MACD on the daily chart could be weakening, the market might not go much further without good news to push it on. Still, the charts are nicely set up for a Fiscal cliff move to the upside if a deal comes in the next week or so. However, if there is no deal or the talks suddenly go bad, then we could see that MACD weakness on the daily chart roll over quite quickly as we get the next downward move. On balance and given no bad news, the charts look better for bulls than bears, but after the recent run you would expect a pullback soon anyway.
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