Sentiment and Breadth Indicators suggesting a price top is close:
CBOE Put/Call Ratio: Back to 6-month lows. Fast stochastics at zero:
stockcharts.com[l,a]dhcannmy[dc][pc20!b50!b200!a.47][iLi14,3]
VIX: Ditto:
stockcharts.com[l,a]dccannmy[dc][pc20!b50!b200!a23.5][iLi14,3]
Nasdaq Volatility Index: Broke to a new 6-month low on Friday. Stochastics quite "oversold":
stockcharts.com[l,a]dhcannmy[dc][pb20!b50!b200!a55][iLh14,3]
Nasdaq Summation Index: At 1500, these levels even exceed the Spring 2000 Bubble-Index:
stockcharts.com
With a poor earnings season about over and odds of a potentially worse 2nd qtr warnings season approaching, catalyst to move this market above current resistance just doesn't seem to be there, given overbought conditions.
Position traders who are willing to wait a few weeks should be rewarded by taking short positions here. It is a low risk trade, with resistance so near and clear - a reward/risk ratio of probably at least 3 to 1, IMHO.
Phoenix |
