After market close:
Although today was essentially a doji the close was up from yesterday pretty much across the board. Volume was a little lower though so although the fight did not move much of anything people might be starting to wait for a stronger indication before pushing in either direction. I don’t like that because then we’re more subject to news and I don’t like paying attention to the news.
Yesterday I believe that I stated the Q’s have more room to climb and they do. But there is a second upward trending resistance line that it’s tracking against right in step with the upper trend lines that the rest of the indices seem to be sticking to. So… everyone has, at least for today stuck to this upward trending line that is currently acting as resistance. Joy. For the moment I think we’re going to keep following it too. The only real problem I see here is that this could be viewed as the top of the range for the DJI and SPY. Albeit as a shorter term trend line. The longer term for SPY has a much more defined area to climb within and in looser terms its the same story for the DJI.
Despite all this, I feel like the markets still want to move up. Subjective, yes, but my impression is that the longer term trend is stronger and we aren’t at the top of the range. Saying that seems to imply that we’re due to pop. But given the volume today, I don’t think we’re ready yet. I would expect to see it either level off or drop more significantly first.
One last thing: Although the volume was down a bit, it was, still, essentially average. Yet, looking at the intraday trading the markets were all over the place. There was quite a lot of push and pull, just in a small range and to get not much of anywhere.
Expectation for Wednesday, August 26th: slightly bullish bias; SPY +0.3