Nothing extreme about this chart - but it's getting close to where a pull back might be expected. It could happen now - but there might be a bit more dancing to do yet.The XJO is into a serious resistance zone. Stochastic is up there in the overbought area. RSI is up in the area between 60 and 70.
If we're into bear market psychology, that's good enough to suggest a pullback and that the current upswing is just a bear market rally (dead cat bounce).
If we're still in bull market psychology - then there's more in this.
The next few days should tell us.
Of concern today:
- Today's bar is a narrow range bar on heavy volume (heaviest volume of last eight days)
- Advance/Decline Ratio for the 50 Leaders 0.92:1 (bearish).
Those two stats suggest smart money selling to dumb money.
That doesn't mean the market must fall. Wait for the next day. If tomorrow is a solid down day, then we're probably back into bear market psychology.
Good luck
Red
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