ST Outlook: US Equity Indices.
ST Outlook: BULL
BULLISH while above ST_PVTLOWS
ST_Charts:
MO PVT PVTHIGH PVTLOW
$SPX BULL BULL 1061.44 1053.45
$OEX BULL BULL 525.42 519.98
$COMP BULL BULL 1969.26 1941.31
$NDX BULL BULL 1445.72 1422.32
$INDU BULL BULL 9896.16 9802.38
ST_CHARTS are Bullish and have not been negative since we touched the 1020 region/ EMA55 on daily charts.
However we should be wary.
Reasons to be careful:
1) Rallies of EMA55 have been shorter in duration.
2) We formed a new closing high on lower volume than previously.
3) Momentum readings are also lower than on previous high.
So what we are seeing is the same old usual IT bearish divergences that have characterised this rally for the past 3-5 months - No Change.
Divergences are never a reason to act, but just tell you to be careful to watch for reversals.
ST, we are over bought and with all these IT Bearish divergences stochastic crosses on daily charts have been very good indicators of ST tops.
So IT Bearish Divergences + ST Overbought = ST Top
Looking at these oscillators!
stockcharts.com[w,a]dacayyay[dc][pc55][vc60][iLp8,3,3!Lp13,3,3]&pref=G
stockcharts.com[w,a]dacayyay[dc][pc55][vc60][iLp8,3,3!Lp13,3,3]&pref=G
I made this point before; that only ST traders / Swing traders are catching the turns as IT turns have had no follow through.
I am really beginning to seriously consider 'dropping down a timeframe'
Deja Vu all over again? Maybe!
Looking to go short on a break of yesterday's lows, or if we close with a bearish reversal - higher high & lower close
-macavity |
