Long legged or spinning top Doji today. Either way they reflect market indecision. We’ve seen a lot of these lately but this is the first time in a while that we’ve seen one on the first trading day of the week. The other indecision Doji’s we’ve seen lately haven’t meant anything to the market and so until proven otherwise today’s Doji goes in the same category, or famous last words.
P/C Ratio rose to 1.10 today and that favors the bulls for tomorrow.
Zweig Breadth Thrust and 4wk New High/Low Ratio still up in nosebleed territory with $BPSPX, etc, flashing warning lights. $VIX bounce today wasn’t enough to give it a ‘buy’ signal in the 60min time frame and its daily chart still says to stay away.
Chart of $SPX and it continues to look good. A few more green days will push the RSI above 70, which is bearish, IMHO. However, I have seen the RSI on $SPX climb well above 70 and stay there, like it did back in February of last year so just because the RSI does climb above 70 doesn’t mean imminent doom. That comes later.
And if you really want to see RSI’s that get completely out of hand, look at the charts of $TRAN and $SPX during March & April of 2010.