Swing High

This week was bullish overall, but volume was very light. The major indexes appear to be putting in a swing high at their respective levels. The financials and Russell 2000 are showing significant relative weakness on multiple time frames. This is important, because the markets cannot continue much higher without support from the Russell stocks and especially the financials.

Next week will be very important in determining the direction of the markets. If stocks break down next week, then things could start setting up for the downside. Otherwise, the medium term trend is bullish and the long term trend may start healing itself if the markets remain bullish to close out the month of November. However, do expect a down leg here as we may be putting in swing highs across the board. It is impossible to tell where the next swing low will be, or even if this is a swing high (not yet confirmed until this down leg is confirmed). It is important to trade based on what is happening and want what the market wants. Keep an eye on the significant support and resistance lines and how the market reacts to them.

Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage your risk appropriately.

Happy Trading,

Jason

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