The stock market keeps going up as if there is only one way to go.
Bad news can only take it down for one day, or sometimes even only half a day.
The Nasdaq has become as dependable as a Swiss clock.
But, this too will pass.
The last time markets went up in similar uninterrupted fashion was February-April 2010, and we know what happened next.
Another week of lunar Red Period is now coming up, let’s see what happens.
Here is a chart of the Nasdaq Composite. Two parallel trendline channels have defined a lot of turning points in this market since 2008. (click for larger image):
We are currently bumping into the ceiling of two overhead trendlines. A clear break above these levels would probably lead to an upward acceleration.
Possible? Yes.
Probable? Hmmm?…
More likely we will fall back and then build a base from which a new advance can start.
So I am not a buyer at this point.
Don’t try to board a runaway train, also don’t try to stand in front of it.
Good luck.
Danny
LunaticTrader Blog 