| Weekly Trend: | Down |
|
| Daily Trend: | Neutral |
|
| Daily Momentum: | ___ | Up |
Quite a poor day in the scheme of things and again this continues to leave us in a non-committal state. The trend is trying hard to keep some upside momentum but its simply struggling. The market has been in an overbought situation for about a week and its also tagging a diagonal line of resistance extending from the April highs. Personally I don’t give too much credit to diagonal resistance on its own, but when coupled with other factors, such as an overbought scenario and some minor horizontal resistance, then I tend to take a little more notice. That’s where we stand here and now. Ultimately we’re still looking for a solid leg lower, but the question is whether this current strength has the ability to squeeze a little higher first. The answer lies with upcoming earnings releases in the US.
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