We are up like a rocket in price now for the last three days. Over the last two days and even yesterday I warned of this possibility. Now the market is overbought in the near term on the hourly chart .... all the indicators are in the overbought.
Daily price is showing a nice setup for a run to higher prices over the next days and weeks. I do believe we are going to have a small setback first ... today we had a 96% up volume day on the NYSE on pretty good volume. This usually means some weakness in price over the next few days. I do like the current technicals of the blue line (money flow) and the green line (measure the intermediate price cycle) are at the bottom. This does not mean price could work its way lower from here ... doubt it now ... but it can occur ... just look at the low in October of 2008 and then look at the new low in November 2008. Just a word of caution. Any pull back in price I would look to add to long positions for the very short term until the money flow has cycled back up at least once maybe twice ... BUT you must be on your guard. We did have pretty good volume today and almost $1 billion in cash inflow into the market. We did have some selling on strength today related to the index ETF's SPY & QQQQ.
We are up like a rocket in price now for the last three days. Over the last two days and even yesterday I warned of this possibility. Now the market is overbought in the near term on the hourly chart .... all the indicators are in the overbought.
Daily price is showing a nice setup for a run to higher prices over the next days and weeks. I do believe we are going to have a small setback first ... today we had a 96% up volume day on the NYSE on pretty good volume. This usually means some weakness in price over the next few days. I do like the current technicals of the blue line (money flow) and the green line (measure the intermediate price cycle) are at the bottom. This does not mean price could work its way lower from here ... doubt it now ... but it can occur ... just look at the low in October of 2008 and then look at the new low in November 2008. Just a word of caution. Any pull back in price I would look to add to long positions for the very short term until the money flow has cycled back up at least once maybe twice ... BUT you must be on your guard. We did have pretty good volume today and almost $1 billion in cash inflow into the market. We did have some selling on strength today related to the index ETF's SPY & QQQQ.
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