extensions, the market is extended like a bad hair day...ready for a breather and maybe even....dare I say... a pullback???? The major indices are getting fairly elevated from the 50 DMA, whenever that happens, the market tend to trade sideways, thus coming closer to an ever rising MA line, or they retreat to get back to said line in a much quicker fashion. The INDU, COMPX and SPX are all fairly elevated away from their moving averages. Thus, positioning for a rise in volatility and a softening of the some of the weaker stocks that are currently in downtrends.
Meanwhile, the topics of tax cuts and healthcare rage on the hill and oil is making a tank of gas a pretty hefty outlay of cash. Gold keeps climbing as everyone sees a devaluation of the dollar and wants to own something instrinsic that actually is worth something.
Labels: djia, gold, nasdaq, oil, politics, sp500, stocks, technical analysis, trend following