The honeybadger market, as I've been calling it, flopped around to end the week ever-so-slightly down. I guess the big money scoffed the Cyprus issues and decided that the Stimulus will be enough to get us through whatever the "Cyprus-Crisis" can throw at us. I can see their point. After all, where else in the world would you want your money to be right now? The US stock market seems to be a nice incubator for hard earned capital.
That said, we are wicked overbought. If only there was something to start the ball rolling down hill.... more on that to follow. First, my calculated scores:
"Score Total" June '12 to today:
The weekly chart of the DJIA is below. We broke through the yellow trend line nicely when it was a level of resistance. Now, it should be some kind of support when the market does decide to correct. This week's Heikin Ashi candle was not more bullish than last week's. This is a sign of weakness. What bugs me is the RSI. It is out-of-this-world high. If only there was a reason to roll the market over...
Oh, look. Here it is.
The head and shoulders pattern (above) on the DJIA (5 minute chart) could give market technicians just enough reason to start selling. My experience has been that these thing turn into "self fulfilling prophecies" once the computers that look for patterns and humans that look for patterns (and there are a lot of them) think they see a recognizable formation.
If it does take hold, the target is in the vicinity of 14,250. If not, the Honeybadger didn't eat the poison.
GOOD LUCK NEXT WEEK!