Tuesday, October 19, 2010
Some bearish signals happening
SPY RSI uptrendline broken today, along with the SnP 60 min. trendline. Market stopped at the 200 week moving average and turned down. DXY stopped its descent at trendline support 76.14 and big up candle today, way due for a bounce. McClellan Osc. bearish divergence and has turned down at down trendline. VIX bollinger sell signal was 3 days ago and these usually can take a week +-3 days to manifest the selloff. IFT total buys vs. sells has been building a bearish case for a while now. 52wk hilos although choppy has turned bearish. My 60 min relative strength indicator has turned down (small caps leading the drop) but the daily has yet to cross bearish. 60 min LRCs are all in sell mode and dailys are headed that way .. whether this is a good correction is still yet to be known. Also after these parabolic rises in gold, AAPL, EURO etc .. this market is way too frothy and overbought. I think its time to get positioned for a downswing. The financials, small caps and R/E could be shorted here. FAZ, DRV, TZA.
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