Market Indices

This is going to be an interesting week for the averages.  Some sort of resolution to the debt ceiling issue will need to appear, and, employment numbers are to be released Friday.

 The Dow continues to trade within its 6 month trading range.  For the year it's up around 4%.  It's getting pinched between the 2+ year upwards sloping trendline established in 2009, and, a shorter term downtrend from May.  A break of the longer term uptrend would represent a pretty strong sell signal.  Up and out above the shorter term downtrend would look like more of the same.  The indicators are looking pretty weak suggesting caution is the order of the day.

Same goes for the S&P 500.  The patterns are getting tight here suggesting a significant move is imminent.  Either way it goes, the patterns should get a backtest providing the opportunity to position.  In the meantime, cash continues to be King.  The Naz continues to look like the strongest part of the market, but, it can't run alone.