Very good day for the DOW, as it was up 96 to 12,720. 80 points away from my target. This was the fourth straight day of gains for the index.

Will it continue on Monday? It is hard to say, since even though it is below my target, the RSI is getting up there. Currently it is at 69.62. The 70 level is considered overbought. See chart below:

I think there is a good chance we do see a pullback on Monday, but then we should resume the upward momentum Tuesday, eventually hitting my 12,800 target.

As for the NASDAQ and S&P today, they were almost flat, as Google put a lot of downward pressure on them. Google was down over 8% on disappointing earnings. Officially, the NASDAQ lost 2, while the S&P gained 1.

¶ 1/20/2012 04:11:00 PM