Even More Overbought
The markets are even more overbought than they were on Tuesday. I had thought then that we were on the verge of a drop, yet the rise extended one more day before running into difficulty on Wednesday. My opinion has not changed. Since June, the markets have had a series of regular ups and downs within a rising channel. We appear to be due for the next down move.
My greater concern is that it looks a bit different this time. On the second chart we see that the 21-day Arms Index is getting very overbought. It gives signals that tend to have longer-term implications. Therefore it is implying a dip that penetrates the bottom of the uptrend. I see room in here for some short positions....267 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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