The Morning Call-When not if

The Market
Technical

The indices (DJIA 13117, S&P 1394) drifted up in a quiet day, closing within their primary trends: (1) short term trading ranges [12022-13302, 1266-1422] and (2) intermediate term uptrends [12117-17117, 1275-1855].

Volume was light; breadth declined. The VIX was up fractionally, remaining near the lower boundary of its intermediate term trading range (and the neckline of a developing head and shoulders pattern).

GLD was up in more directionless trading. It continues to trade above the lower boundary of its intermediate term trading range.

Bottom line: stocks continue to have a bid under them; so I would expect that a challenge of the 13302, 1422 upper boundaries of the Averages short term trading ranges is likely a matter of ‘when’ not ‘if’. Buying stocks at these technical levels has historically not been a wise move; indeed, we may be given the opportunity to lighten some positions if any stock trades into its Sell Half Range or is clearly overextended technically.