Stephan,
In the past when I mentioned the BUBBLE/RUBBERBAND/GUITAR STRING in the past, the money was only going into the big stocks on a rebound. On my GUITAR it was obvious that of that divergence; therefore the call for the BUBBLE.
Yesterday and today was different, with money going into smaller issues and more broad based; therefore no extreme reading in my guitar. Tie that with the resistance of 8084 broken slightly(still not convincing), gave a hint that the short-term sentiment/trend may be changing.
I also mentioned the relative flatness, as compared to the recent past, which reduces the extreme guitar readings.
If the trend turns to the upside for the short-term, a 100-200 point drop could produce a greater rebound before becoming a CLASS SELL. Lets say we only drop 150 points from todays highs, my short-term technicals would only drop to around 70. The upside from 70 to a CLASS 1 sell status would be 2-3 days and about 300 points, just based on mathematical calculations.
Please understand that I have not turned bullish, just that I am now less bearish. We still have a major resistance at 8182(8232) to break to be convincing that an uptrend is resuming, otherwise we are still in a trading range from approximately 7400-8200.
I am still holding to my position that the rally should top off either today or tomorrow, with a pullback into next week.
Hope I explained it clearly. |
