Waiting for sell signal
The RumWave is reaching it's highest technical levels. This is territory that triggers caution. The daily scores above show the trend of this wave and how we are reaching overbought territory. However, RumWave followers should keep holding their positions for now. I'm waiting for the sell signal, which has not arrived yet. This specific sell signal usually precedes the DJIA's decline by about one day. So, when it happens the pink dot will turn to red on this blog. At that point you should take profits. When will it show up? I can't say. It may be tomorrow, it may be 10 days from now. That is why I am still condoning a HOLD, BUT READY TO SELL status.
|DJIA 4hr Chart|
The 4 hr chart above still looks good. Today's candle is stronger than yesterdays, and the Bollinger %B pulled back slightly. The Trend Quality is still increasing, which is bullish. The ADX/R is also getting closer together. We should keep an eye on that, as it help to indicate strength of a move.
|DJIA Daily Chart|
So, the Bottom Line is to keep holding and wait for the signal.