Still room for a week or two of profit

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Still room for a week or two of profit

Earnings helped boost the market higher as well.  Companies like Tesla (TSLA) surged 10%, which helped lift the other tech stocks.  Chevron (CVX) rose nearly 5% after earnings and the announcement that it would raise the annual dividend and spend $75 million in stock buybacks.

Where does that put the broader market?Here’s a chart of the Dow Jones Industrials (via ticker DIA).  I’ve also included the Williams%R indicator.  I’ve written about it before - it’s a momentum indicator that moves between 0 and -100.  A reading above -20 is overbought and we’re sitting at -29 right now, which means we could have more upside room to go.  

You can also see on the chart that an overbought reading on Williams%R doesn’t mean the trend is over.  But it gives you a warning of a potential reversal.  The two areas in the middle of the chart had an extended overbought reading as the market continued higher.  That could happen again, but we’re getting close to a long-term trend line that we’ve had a hard time crossing in the last year.  Will we get a breakout here?  Anything is possible, especially with a Fed meeting next week.

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