Saturday, September 13, 2014

You Spin Me Right Round

The Market Trend Model ( looks more like a rainbow this week with all its splendid colors of green, yellow, and red.  The "rainbow effect" usually occurs before the market embarks on a trend.  Whether that trend is up or down has yet to be determined.

The charts for the major indices tell the current story line.  Both monthly and weekly time frames continue to show rising prices in solid, well established uptrends (yes, even the Russell 2000 monthly chart is in an uptrend).  Meanwhile, the shorter daily time frames continues in a sideways consolidation.

And just to make things interesting, liquid "glamour" stocks are, for the most part, moving up with decent buying pressure.  To borrow a tired and overused cliche, it's a stock pickers market.  (But isn't that always the case?)

At the moment, it appears the market will "spin right round, baby right round like a record, baby right round round round" until bulls or bears take control to establish a definitive trend.