Broader Market Update 8-25-2014 to 8-29-2014
Our research shows the broader markets should push ahead starting early Monday for a retest of last fridays intraday high for the Dow. Last Friday the Dow Jones Industrial Average hit a high of 17064 intraday less than 100 points from record highs before pulling back and closing at 17001. The S & P 500 on the other hand late last week was already trading at record highs which means the DJIA is lagging the S & P 500 and still needs to move through its previous record highs. Once the broader market averages are both intrenched in new record territory, the broader market averages should slowly continue to edge higher through the rest of next week and possibly into the first part of September. Overhead resistance will still play a dominate roll limiting how high the broader market averages will move on the short term due to mid August through early October seasonality weakness. Once the Dow Jones Industrial Average makes new highs, our research favors the market holding and churning higher for the next 7 to 10 trading days or possibly longer at which point the market will head lower and retest the 200 day moving average. From there we will again position ourselves for the final run into the end of the year.
This coming week we’ll continue to remain cautious and look for short term trading opportunities only unless otherwise noted.
Have a great week.