Mutual Fund Monday produced an up day.
No one can predict the market with certainty. But there are signs of a top that seem to be gathering force. The market is approaching important resistance at the 200-day moving average on a weekly chart. The market is drifting higher but the MACD histogram indicator is not. The stochastic seems to have been pointing down for the past several days. The RSI indicator is overbought again. A fall is approaching. I could guess Thursday, October 21, 2010 might be the start but that would an educated guess.
As I have written before, the market is like a roller coaster. Highs are followed by lows. Lows are followed by highs. And the cycle repeats itself over and over again. The market is due for a low. That's the road ahead, not the view out of the rear view mirror.
Let's see how this week unfolds. I wouldn't be surprised at all if the market prints, say, 1198 before dropping. The drop will be a correction and another buying opportunity. The idea is that it is better to buy into the C Fund at say 1065 rather than 1185. Call me crazy but that's my thinking.
Good evening!
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