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The health/condition of the broad market can not be overlooked or overstated. In “Focusing” on the broadest measures of the stock market (NYSE/Wilshire 5000), the chart above reflects that they both remain inside of large flag/pennant patterns.
A great deal of attention is being focused on the S&P 500 as it deals with the 800 pound resistance line (see post here). From a even broader market perspective, don’t lose sight or focus on the NYSE/Wilshire patterns.
Should these NYSE/Wilshire break resistance…a VERY GOOD signal!
Check out the dollar weekly chart, it sits right at the down slop bullish head and shoulder bottom neckline. It looks to me more like a pullback to test the breakout, rather than a trend change. Plush 79 has a confluence of supports from past. Unless 79 is broken decisively, I remain highly cautious here.
Threw in a overbought, and against strong overhead resistance market here, I wonder what is in the store for the next two weeks?