I’m watching with interest to see whether the index is still in Bull territory but consolidating, or it has formed a top. Since volumes are still extremely light, it’s anybody’s guess what next week will bring. One the one hand, the bulls are of the view that when traders come back from their vacations this month, they will attempt to push the market up one more leg, but the bears are of the view that the majority are just waiting for the right time to unload. Either way, volumes are the key so I am going to wait for them to rise before I take my signal.
I have also drawn a channel which represents the bullish view. Until that gets violated, they have every right to keep saying that this is a bull market. Will the index follow it up to its expectation levels? Your guess is as good as mine.
Happy Trading
