March Dow Futures Above : Challenging its Contract high. What’s interesting ? The more narrow Dow index of 30 stocks has not been able to take out the High posted 12/31/13. 16540. Friday’s high tick was 16508. Is this a top? I think if we settle above this level, it opens up the door to 17,000 as a nice round number target. Money flow has continued to support stocks, even in the face of Geop political issues in the Ukraine. The market has gotten bad news from there and has sloughed it off. That typically is a sign of bull trend continuing.
Also bullish? A lot of prognosticators and soothsayers are warning of the “big correction” on the horizon. Probably a sign we continue to roll higher against the litany of negative and worrisome issue.
Below is a contrasting chart of the broader S&P 500. It has been making new highs since taking out 1850 on March 3rd. That was the golden target of a lot of bulls in the cash market. The futures market posted a record high at 1887.50, 37 handles above that old resistance. 1850 will be the pivot because for so long it was the upside target.
Looking at the chart, SPH has an upside around 1905 on the charts. If the charts are to be believed? That’s always the big question.
That’s a pretty good bull channel. The Trend has been a nice steady 45 % angle since January of 2013. A lot of people have lost a lot of money betting against the US market.
They were doubly hurt in 2013 if they went short the stock market and long gold. While gold has rallied from 1200 to 1350 over the last 3 months, it has reached resistance at 1350 which has been resistance going back to September of 2013.
