Good Morning,
Dow rose another 100points as it broke past the TAOS resistance level of 8799 by closing at 8848. This actually give it an potential to test the next level which is 9015 in the near future. But a pullback is expected soon.
Based on our V3Go TSC, the support for today will be at 8800. Trading below it will attract profit taking to set in.
For today, based on the SIMSCI chart, it present UT TSC formation but the ROC is getting smaller so do expect some resistance on the blue chips counters and should the SIMSCI fail to stay above OP and go below 296.6, there could be a chance of profit taking to set into the market. The V3Go W% is an upside sparrow formation near the extreme zone thus one should watch the OP carefully.
For the STI chart, it is also an UT TSC and the upside ROC is getting stronger as of yesterday so the general market may still buy on dip as what the analysts now say after calling for sell for many days and weeks since June.
But if the STI go below 2462 today, which is the IP of the UT TSC, then there is a chance of profit taking to come into the picture.
Since you are going to take profit, one can also turn short on the market BUT WARNING, most of the stocks and the market itself is trading above the V3Go DIFF R/L level so to go short, one should reduce your qqty as the downside pressure will not be as great. And since the V3Go W% Indicator is pointing upside ( W% above MA ), booking quick profit on the shorts (e.g. -1(V) ) will be a good trading strategy.
Remember, we made money by going long since 14th of July because we followed the V3Go Rules and continued to ride until todate.
If the V3Go Rules calls for profit taking or sitting on the fence for the longists, then One should abide by it and trade accordingly.
SIMSCI already broke below the IP (as I write at 0915hr) of the UT TSC and trading below the OP, alongside with the NIKKEI so One should really be careful on the Long side today.
For those bullish in the market, then do expect/accept that a pullback/profit taking will be good for the market so that one can be entice to go in on cheaper price idealogy PLUS the selling will lure in more short sellers to come into the picture.
For those who wish to go short, no problem, as long as you follow the rules but since the market is above V3Go DIFF R/L, try to book profit early/fast using the 1(V) levels so that you wont be caught when the buying wave come in.
Cheers!
Disclaimer as usual
Kelvin Han
V3Go Chief Trainer
V3Go Mentoring Program