$TRAN is the leader. No question. While it’s nice to see the Q’s being pumped to the moon lately due to high expectations for AAPL’s earnings, if the transports roll over then so will the other indexes.
You can see on the chart below several indecision doji’s in the last three sessions. Could prove to be totally meaningless as $TRAN is well above all MA’s with the 20MA about to cross up through the 200. $TRAN is also well above the rising trend line and closed out the week above its late October closing high. IMHO, the chart does look good but I have seen the transports tip their hand so many times in the past that it needs to be watched next week. You can also watch $DJUSAR, which looks like it’s trying to put in a bottom, and $DJUSMT which is exhibiting the same kind of indecisiveness as $TRAN.
The thing about $SPX is that it took it four weeks to rise from its October low to its October swing high of 1292.66. Ten weeks have passed since then and still no new rally high. But we are close so maybe next week.
To me the weekly chart looks good but not great. On the weekly chart I think it’s very important for the 26MA to turn up and then cross up through the 52MA. That whole process will take several weeks but it can’t start until the 26MA stalls, which hasn’t happened yet. Well, you can’t always get what you want.
I’ve drawn in a rising price channel to replace the symmetrical triangle.
Certain to be some wild swings in the markets next week on earnings.
Be careful and be extra krispy careful trying to front run on the short side.