Follow through

The rally continues on Friday in all indexes. I don’t have anything to do except let the rally play itself out. Since we are in new high territory in most indexes except the Nasdaq, and even that’s at a multi year high, there aren’t any reference points. I don’t believe in price projections, especially those offered by finonacci targets. I prefer to let my indicators indicate. Once we get a pivot, a correction, and a resumption of trend then there is more analysis that can be done. Overbought/oversold indicators are fairly useless in this environment, until some backing and filling – testing and retesting – set in. If some momentum divergences develop, then a case can be made to go short, but until that developes I just have to go with the uptrend and hope a washout doesn’t suddenly appear. I put up a chart of the FXI China ETF, compared to the S&P ETF. Maybe the US market is playing catch up to some of the more dramatic moves overseas. Meanwhile, I’ll be working on putting up more content on this site in the articles and indicators sections.