I have looked at the weekly charts for the following indices:
INDU, SPX, OEX, COMPX, NDX, SOX, TRAN, R2000 and NYA. All of them are bullish and overbought. And all of them have the trending indicators being set. But the week is far from being over yet, so one can't put much weight on this until the week is over. Since the NDX, compx and r2000 are showing an intraweek sell signal, it's likely that it will pull back a bit. Given that the trending indicators are on, I would think that it they will resume the uptrend as soon as some pressure is released to bring the indicators down from their extremes.
When the markets are in this trending mode, sell signals are not very efficient, and buy signals come in late (after the market has turned up) And I have sat on the sidelines many a times watching it climb higher and higher. I don't have a recipe for catching the whole move and I don't thing anyone else has it. But if you do, please let me know. |
