Shrouded in mist
Posted by Danny on July 31, 2012
The markets remain very difficult to read for the moment, and are largely moved by the day to day news.
The stocks went up after initial weakness last week, once again giving us mixed signals.
Let’s have a look for the current Nasdaq chart (click for larger image):
Back in May we already warned for a sideways summer, and that’s what we seem to be getting. This situation may well continue until autumn, when the market is likely to chose a direction.
A one year uptrend remains intact as long as this market holds above 2850.
The current lunar Red Period could create a retest of that level, but if we are still above 2850 by the end of the week, then we will have a good buying opportunity with a potential to go to 3050 in August.
Stay tuned, Danny