Today's close and after carefully looking thru some index charts, i am starting to see the possibility of a topping out(short term at least) to this rally. A short term correction in terms of price and maybe time could be at hand here. See chart for more details. A more cautious approach with longs is a good idea here. And as a matter of fact, i welcome a nice deeper correction to help bring back some fear and reset many of these charts are too extended. Also, another warning sign for longs is the fact that i am not seeing too many decent long setups. Maybe MSFT and AMZN earnings did more damage to the action than we thought.....
again, i am not bearish here, i am just expecting price to retreat here to help alleviate some very overbot conditions.
see you guys tmrw!!
3 comments:
Hey Stewie,
I've been out of action for about a month for numerous reasons. I'm getting back in, and looking at this post made me wonder: during the big rally in March/April, we all (or maybe just myself) kept thinking that this rally was getting more and more overextended, but it just wouldn't quit.
Although I see we've been pushing sideways for a few weeks now, and the S&P wants to reach for 1050, what makes you think we'll take a breather NOW?
hi cliff. a little breather does NOT mean the rally is over. as a matter of fact, based on sentiment alone, i believe will run most bears out of town to be honest. this rally is an incredible phenomena that i have never seen before. i have never seen a rally with such little faith in it. bears always speak about the 'very bullish' sentiment. Where is the bullish sentiment? show me? i am dying to see it? even myself, as i write this i am skeptical of the rally!! lol!!! it's true. a strong rally will always climb a wall of worry and doubt. always have and always will. But that doesn't mean that strong rallies DO NOT PULLBACK! it might be time a little retrace here now. that's all i am saying.
thanks!
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