Bears are lurking
This afternoon I reviewed the RumWave trading method as far back as 2005. It has never returned to a bullish pattern from its current state without some kind of further decline. I'm not sure what the catalyst will be, but storm clouds are on the horizon and I hear thunder in the distance. Euro headlines have been quiet for a seemingly long time, maybe it will flare up. Also, the first week of an earnings reporting period (this week) is usually the best. After that the market averages usually fare worse.
What I find particularly interesting with the daily score is the 4 hr score compared to the RumWave score. If we look back at the previous times it reached the orange level, we saw a large decline within a couple days. On the last decline, which was a RumWave peak, the RumWave scores were in the red. My interpretation of this data is that we are near the peak of this brief impulse higher and will return to the bearish trend in the near future, continuing the RumWave chart decline.
The 4 hr chart actually is showing some good bullish strength signals. I believe these to be false hopes. It is these kinds of indications that will cause some investors to go long here. If the RumWave holds true, those investors will be hurt in the near future by that decision. An opportunity to get bullish is not far off, it just isn't right now.
The daily chart is also showing some good strength. Again, I'm not betting on this continuing for too much longer.
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Best of luck to your trading!