$COMPX 1358.28 89.64 7.07%
$INDU 6926.49 379.44 5.80%
$INX 719.60 43.07 6.37%
Markets were showing positive divergences on price and breadth actions on all time frame as noted on previous posts. The view is based on after reviewing hundred of chart set ups on price and breadth actions. Positive divergences on weekly charts are huge and the positive divergences on breadth charts are confirming the +D. While most of investors and traders are still looking for safty or for short-side profit even after markets have discounted 55-60% to 1996 levels, in my opinion, markets can show volatility to upside with 3x and 2x leveraged stocks. The price volatility will provide better trading opportunities and improve market sentiment while economy is taking time to recuperate from the recent credit crisis/contraction. SPX progressive price targets are SPX 740 and 800.
Market Volume:
Markets rallied on better volumes with strong price performances today. The volume is still excluding those who are completely turned off about the markets, so, once trillions of sideline money thinks that markets are finding stable bottom and economic turn around, this market will rocket up. With the 3x volatility, markets can go up or down with faster momentum as noted before 3x DTO went up 1000% in 8 months.
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