No top yet, but time to “fasten seatbelts”?
Some more upside resistance levels fell by the wayside last week as the major market indices continued to push higher. And despite ongoing “overbought” technical conditions, all signs continue to point to still higher prices ahead.
That being said, a consolidation will occur at some point, and – except for the DJIA, which is trading at new all-time highs – most indices are approaching levels where some price “turbulence” might be anticipated. The Nasdaq and the Russell 2000 are approaching their recent highs of about 2370-2380 and 780-785, respectively, and the S&P 500 is nearing the previously mentioned 1370-1380 resistance level.
I’ll continue to view any pullbacks from here as put-selling opportunities – albeit at elevated levels. Perhaps this coming week’s options expiration will provide the backdrop for such an event.
Watchlists
No changes to the watchlists this week as I’m away from my main computer and unable to run my usual scans. Needless to say, the results would show many more “upside strength” candidates to choose from compared to “oversold” candidates.
