Weekly Review

DJIA - Daily Chart - Normal Scale
Dow Jones Industrial Average is in the over bought level, but over bought doesn't mean over.
Still showing strength in daily chart, but there is a divergence in weekly chart.

SPX - Daily Chart - Normal Scale
S&P500 showing a possible price and RSI divergence.
Have a very major resistance at 1576.
Have a support at 1474.
A break below lower green trend line is a possible bearish case.

NASDAQ - Daily Chart - Normal Scale
NASDAQ is the weakest among the indices.
Showing a divergence on both RSI and MACD.
When bearish sentiment enter the market, this indices might have a bigger pullback.
A break below the red trend line will be a good condition to set up a bearish trade.
 
Russel 2000 - Daily Chart - Normal Scale
Russel 2000 is the leader of the last bullish move since September 2012.
The chart also showing a divergence on RSI.
Have to wait for several day to see if the price action agree to that divergence event.

OVER BOUGHT DOES NOT MEAN OVER...                     

NYSE Bullish Percentage Index
NYSE BPI show an optimistic sentiment around the market.
This sentiment might lead to a correction or pull back in the near future.
Manage our risk on bullish trade and prepare a bearish trade set up.


Gold Future - Daily Chart - Normal Scale
Gold price movement is halted above support level at 1530.
From the chart we can see that gold move on a channel between 1530 and 1805.
A break below the 1530 might lead to a violent sell off on gold.
Personally I am bearish on gold and silver.
I will change my view to bullish if gold can break above the grey down trend line.

Have a nice weekend trader.





Location: Surabaya, Indonesia

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