After
rallying well off triple bottom support at 15,500, the Dow is beginning
to run into very heavy overhead resistance where it’s failed more than
10 times since late 2014. If we fail to break to new highs, the Dow
could easily pullback substantially, near-term… especially with the
absence of any good news in the global economy.
Technically, momentum is beginning to turn south. RSI, MACD and Money Flow all signal overbought conditions in the market. What may not help things is Fed talk of a potential rate hike in April 2016, based on their findings that the U.S. economy is stronger than believed.
As we all know, the U.S. economy is not strong at all. Consumer spending, retail numbers, the U.S. savings rate, unemployment, manufacturing, etc. etc. is not as healthy as the Fed believes it to be. Consider buying to open the DIA June 2016 175 put up to $5.80 and / or the QQQ June 2016 107 put up to $4.
Technically, momentum is beginning to turn south. RSI, MACD and Money Flow all signal overbought conditions in the market. What may not help things is Fed talk of a potential rate hike in April 2016, based on their findings that the U.S. economy is stronger than believed.
As we all know, the U.S. economy is not strong at all. Consumer spending, retail numbers, the U.S. savings rate, unemployment, manufacturing, etc. etc. is not as healthy as the Fed believes it to be. Consider buying to open the DIA June 2016 175 put up to $5.80 and / or the QQQ June 2016 107 put up to $4.
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