Was this morning just a rehearsal for what we'll see next month? Despite the scary poke under 1018 in the S&P 500 (SPX), that level managed to give support for a move into the upper range of today and the two prior days. If this wasn't just a pullback up before rolling down again, it leave open the possibility of that fifth wave I'm thinkng the index still has ahead. It would fit with the tendency for a low late in a month that fund managers buy, readying for the new money coming in at the early part of the next month. So we'll see!
Not that I'm a raving bull. Whenever this ending part of the rally completes, I'm expecting a very significant selloff.
Volumes don't scream a sell pattern - yet - so a continuation remains possible even with negative divergence creeping in. As for indicators, today I'm showing the bullish percent for the SPX. It's still quite high! But it should be considered overbought. There are indicators on it too, which look like negative divergence to me.
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