Day of Pause
November 14th, 2005 by BWV
The Dow Industrials’ meager 35 point range pretty much sums up today’s action: A slowing of Thursday & Friday’s big momentum.. and a harmless pause day that is more likely to help set up the next leg of our seasonal rally than become any significant topping point.
The Dow is facing some stiff resistance here at the July-Sept highs. The positive side to this fact: DJIA component blue chip type stocks are not leading this market.. they’re lagging badly.
The NASDAQ has made a sweet run after breaking this downtrend line. Now that 34.6 Stochastic is about to turn.. it looks like this index could use a break.. even just for a few days.
I’ll be guaging the validity of my year-end rally hypothesis by the market’s behavior during the next 4-5 days. The more sideways (& less down).. the better.
Even with pullback/sideways action in the indices, I should find long setups aplenty this week. After taking in tonight’s Kentucky basketball game with family, I’ll be back here to list a few stocks worth stalking tomorrow.
