Wednesday, February 12, 2014

US Market Update; Look For Small Correction Over the Next Few Days

The QQQs (top chart) have had one heck of a strong run.  They've been rallying since February 5 and have rallied from 83.7 to 89.  But prices have hit resistance at levels from late January and the MACD is starting to decline.

In contrast, we have the DIAs (top chart) and IWMs (bottom chart).  Both have rallied over the same time period, but not as strongly and both are also hitting resistance areas.

We've had some strong upward movement over the last five days.  At the same time, we're seeing prices hit resistance on a number of fronts.  The cat is out of the bag on Yellen; she'll continue the easy money policies if Bernanke.   And considering she's using a broader measure of unemployment, we can expect a longer period of lower rates.   But over the next few days, we'll hear more of the same with added political grandstanding.