Here's a chart of the NasdaqNote the following:
1. RSI.14 keeps hitting up against the overbought level of 70. Three strikes and you're out? Maybe.
2. Strong negative divergences on the MACD Histogram and CCI.30.
3. Volume at Point 1 - high - at the start of a trend - who's buying - it's sure to be smart money - that's a positive.
4. Volume at Point 2 - high - at the top of a trend - who's selling? - it's sure to be smart money not dumb money - that's a negative.
That doesn't mean the Nasdaq or the Dow must fall tomorrow. But the probabilities are increasing that we'll see the American Market have some sort of a retracement - perhaps to the 50-Day MA.
I'm also concerned about what the Gold Miners charts are telling us - but that's another story for another time.
Good luck
Red
No comments:
Post a Comment