Financial Market Analysis and Forecast e090612
Markets traded to targets and consolidateSPX 950 and DOW 8800
* Markets are consolidationg after trading to the noted targets: SPX 950, DOW8800, NYA 6200, and NASDAQ 1880
* Short term price actions are continuing to show negative divergences and narrowing breadth, however, we do not have a start of a correction confirmation. Trading near at intermediate resistance
* Markets trading in a range is a conservative view as I consider all surrounding circumstances based on technical readings of analyzing 100s of charts and fundamental analysis. My view was consistently that markets are overbought, so that it is better not to chase markets even though we now have seen unreasonable bullish stance after markets traded up 40% from the March low. Until proven otherwise, such as market dynamics and technical reading changes, I hold my view which I expressed during the last few weeks since Markets traded to SPX 950 and DOW 8800. For VST trading, of course, trade based on technical readings.
* I commented on SPX 1000 +/- target since a break above 850 on 3/26/2009. Even though I anticipated a meaningful pull back, markets have not shown a pull back as we have seen a continuation of the recent trend.
* Mid year cycle on 7/13+/-: As previously noted, a major mid year cycle date is next pivotal market juncture. Intermediate targets are: SPX 1050 +/-, DOW 11000 +/-, Nasdaq 2200, QQQQ 43, NYA 8000, $BKX 77
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