Market Update for Saturday April 28 - 2012

It's been a while since my last post and I wanted to get back and write my thoughts on what I see on the markets.
I see reasons for more upside, however I also see the market could move lower any minute.
Looking at the chart of the NYSI Weekly from StockCharts.com, the Full Stochastic is turning higher, which in general is bullish for the markets.
This could mean the market is getting ready for a multi-week rally.

The daily chart already shows the Full Stochastic moving higher and not flatenning or even turning down yet:

Looking at the NYSE hourly chart below, we can see 2 open gaps above, which indicate that the market could at least return to fill the gaps at those leves. However, the Stochastic is at overbought levels, although it hasn't turned lower, which means price could continue higher.

However, looking at the NYSE weekly chart, so far it has found resistance at its long term trendline. IMHO, unless this trendline is broken, any move higher, will fade at the trendline and the markets will continue lower.

RSI for most indices is overbought on the hourly charts, however, not on the 4 hour charts. My guess is we could move higher until indices reach overbought on 4 hour charts and then we will see a decline, but looking at the hourly charts, I'd be careful opening a long position with Stochastic in the overbought zone.

Best regards,

STN.