Time to Put Your Shorts On

A major change appears to have emerged back on March 1, when the markets gapped upward on heavy volume and immediately quit. This looked like an exhaustion gap and suggested a downturn. So far, the selling is not much more than a hesitation, and has not yet penetrated the uptrend since November, as we see in the first chart below. 

But the second chart, a weekly chart, tells a different story. The entry for last week was a typical "cross" week, similar to what so often is seen on market highs. Whereas the MACD has already crossed on the daily chart, it looks about to on the weekly. On both, though, RSI is coming off an extreme overbought reading. That all makes the turn at the start of the month look informative and formidable. ...245 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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