One More Hump?

Last Friday after the geopolitical mini hysteria on Thursday I noted how I refused to buy any bearishness on the stock market during a negative flash point that had absolutely nothing to do with market fundamentals. The charts had remained unbroken and sure enough Friday was positive, yesterday was nothing and today the US market is green pre-open.

All this with end of the world headlines cranked out by the MSM. Today that changes a bit (clicking the graphic yields the article, which I have not read yet since the headline is what this post is concerned with)…

7.22.14 pre-market headline from Market Watch

I’d be pissed had I shorted on Thursday.  Indeed, after starting out the year having my best gains come from the short side it has been a long stretch to the current moment where any shorting done has eroded overall gains.

Going forward NFTRH has two options going…

1. Near term correction with the potential (not necessarily a directive) to clear the pipes for future upside or…
2. Keep on going up up up… to bull termination.

Here is the daily Dow chart from NFTRH 300.  Notice the robotic, unbroken uptrend and the even more robotic MACD and RSI.  As #300 noted “RSI looks like a medical monitor attached to a stable patient”.

To be sure, the market is thinning out to the likes of the venerable Dow, S&P 500 and Nasdaq 100 as the small caps, banks, biotechs and even housing struggle.  Considering what is happening in bonds (credit spreads going risk ‘OFF’), this is classic topping action.

We’ll see.  After Thursday I was hoping for one more hump up before thinking about shorting.  Today could bring it if pre-market is any indication.