Monday, February 7, 2011

COMPQ - Monthly

Tech is only 3% away from its prior highs, amazing.  Below is a five year monthly chart. RSI is showing overbought and there is bearish divergence on the MACD.  Still, this market as much as I hate it, just grinds higher and higher on fumes but still it grinds.   With retail money now moving in after an almost entire year of net withdrawals this could be the final push needed.  Bonds still getting whacked though and IWM, EEM, $TRAN not supporting this move.

Edited on 2/7 at 9:17AM - also consider that many will be expecting either a double top here or like most resistance of late, we just blow right past the prior high.  I'm not calling a top, not in this manipulated market but remember when most people think the same (i.e. trading to the prior high) the opposite usually happens.


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