Another example of why I will never suggest shorting this market. I prefer cash over shorting every time.
Market has gone into extreme overbought mode, again.
90% up day with about 97% of volume going into advancing issues.
$TRIN closed at 0.21, which is the lowest since the close at 0.14 on 11/28. Two days later $SPX rose by 51.77pts and closed at 1246.96.
$NYAD, the daily, closed at 2312, so this is overbought.
$NYADV closed at 2680, so this is showing overbought.
$NYDNV closed at 21.56, so this is showing oversold.
Based on the above, and based on the massive gains today, I think it’s safe to expect a ‘pause’ day for tomorrow. But what do I know?
Chart of $SPX showing the down trend line about to get tagged or broken. We have had a series of higher lows, marked with the green line, and a series of lower highs, marked with the black line. But we have managed to stay above 1158.66 for almost a month and now, if the market is truly going to get up and go, we should take out 1267.06 soon and then 1277 and 1292 should fall in due course. But today’s action could have been little more than a massive short squeeze and if that is the case then we should have a pretty good idea by the end of the week.
Things are not always what they seem.