With $NASDAQ 100(NDX)$& $S&P 500(.SPX)$overbought now on daily chart, this week will probably give us a decent pullback before moving up again or we could just see an overall change of trend like what happened during late march - early april when markets went overbought on daily charts.
We are staying nimble as usual. Every signal was right up until friday!
When markets are overbought with smaller timeframes on multiple negative divergences, its time to stay nimble and defensive. Not overly bullish. There are also signs of $Light Crude Oil - main 2208(CLmain)$ ,$Cboe Volatility Index(VIX)$, $Micro 10-Year Yield - main 2207(10Ymain)$& DXY (USD) all looking to do a reversal / relief rally on the weekly charts! If those 4 tickers do a rally, the index will most definitely PLUNGE!
As always trade safe and invest wise!
Subscribe to my YouTube channel for your weekly market outlook and technical analysis videos!
www.youtube.com/c/investing101channel
Comments