Right now the market is talking to us. We hope you are listening because we are.
One look at the indexes show a lot of talking going on right now in the form of our indicators flashing “In the Zone” or at the least be aware. This is how the market talks to us.
First up the 20 day one-minute time frequency chart that covers the whole run off the recent lows.
These nano short term one minute charts all show the same thing:
A. Retest of the highs commonly referred to as resistance (red lines)
B. At trend channel resistance (pink lines)
Moving on to a larger time frame and frequency we see numerous things that make us super cautious on the longside.
In each of the above charts we see the same thing brewing in all of them.
A. RSI in overbought territory (red circles at the top of each chart)
B. Full Stochastics in over bought territory (red circles at the bottom of each chart)
C. All at trend channel resistance levels (Pink channels in OTC Comp. and Dow)
D. All are at key Fibonacci retracement levels
E. Lackluster volume on the way up in each index (not shown, but it's there or not there shall we say)
F. In an ABC down with A is done, we are in B up (right into options expiration mind you) with a potential C down yet to rear its head.
G. Potential retests of recent highs that if they pull away from here it's a double top at the least resistance right here.
In Summary Big Picture:
It's options expiration. This means we could sit here for the rest of the week and chew around more. But we see too many indicators telling us that we are in a high risk zone on the longside. Those that have been here for awhile know what this all means all too well. If that's the case then what is that saying about our Inverse ETF's out there? Just the opposite of course.
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