Despite a steady parade of fear stories and scary newspaper headlines, the markets plow steadily and fearlessly ahead. I can't explain it, nor do I want to, but ultimately, I will depend on my charts to tell me what's really going on.
First, let's take a look at the Wilshire 5,000. This chart really is THE US market since it includes 6,000 stocks -- almost all the actively-traded stocks in the US. What I see here is the familiar and bullish "cup and handle" formation. The circle outlines the cup, and the move out of the cup represents the handle. The Wilshire shows almost overbought according to RSI, so I would expect the market to rest and consolidate for a while. But I don't expect a violent sell-off (unless, of course, some horrific news bursts onto the scene). MACD looks tired and also points to the market resting.
Next, I want to ... Log in or subscribe to continue reading.
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