This week's update will look at:
- 6 Major Indices
- 9 Major Sectors
- Various World Markets
6 Major Indices
As shown on the Weekly charts and the percentage gained/lost graph below of the Major Indices, the largest gains were made in the Dow Transports, followed by the Russell 2000, S&P 500, Nasdaq 100, Dow 30, and Dow Utilities.
On a weekly basis, these indices remain in a highly elevated stance relative to their Stochastics cycle, and, with the exception of Utilities, they closed the week at or above their upper Bollinger Band.
The same can be said when one looks at a timeframe in which each candle represents a one-month Options Expiry period (the current candle closed on Friday), as is shown on the next charts...with one difference...Utilities closed at its upper Bollinger Band after pulling back from its prior close above at the end of the last options expiration period.
If one is just going long
here, be aware that you are doing so, not only at the upper end of their weekly and options expiry time cycles, but also very mature cycles, as well as at or above their upper Bollinger Bands.
I'd suggest that if we don't see some sort of orderly pullback from these levels, we may see a parabolic move to the upside, followed by, what could be, a swift and violent/volatile correction -- something to which I alluded in my earlier post today
(Friday) relative to this week's move in the U.S. $ [and for which I was ridiculed at another site where I guest-post articles...so no, I wasn't "smoking" anything (I'm a coffee-hound and teetotaller) and I always trade with a clear head (I take my work very seriously and my analyses are not done without careful scrutiny)...the only thing that may affect my mind is age...and I can't do anything about that!]. :-)
In any event, combine the high price of the U.S. $ with the high prices of equities (all-time highs in many cases), and that makes it unattractive for new foreign investment at the moment.