Market Indices

The market caught the anticipated bid at the long term trendline.

Volume came in a little light, but it was a holiday week.  The indicators are curling up from oversold.

The Naz hit its 58 target a little faster than anticipated.  The market is currently near its right shoulder target.  Head & shoulder patterns are often questionable, since the market has a tendency towards going higher.  The indicators are still pointing up from very oversold conditions.  In addition, some other indices, shown below, have broken thru their respective downtrendlines.  I'm going to be watching the Naz closely to see if it too can break its downtrend.  A meaninful break below the 50 day ema will be a time to book profits.

 The Transports didn't flash the potential head & shoulders pattern, but have broken decisively above the downtrend.  The indicators are nearing overbought but still have some room.

The Semis also broke above their near term downtrend line.  They still hold the potential for a head & shoulders top with the right shoulder target near 36.75.  Short term this helps the case that the Naz will break its downtrend, but it doesn't shout "all clear."