Today the markets continued powering higher with no sign of easing up... until the Apple quarterly earnings were announced after the close (generally accepted as a "miss"). I think it may be just the catalyst we need to instigate a pullback of a few percent. I sure hope we get it, because parabolic moves to the upside are usually met with parabolic moves to the downside.. hence the term parabola. I submit this picture as evidence:
I'm not the smartest guy in the world, but I can see that the chart above is due for some red candles. RSI is the highest it's been on the chart and so is the Slow Stochastic. I just can't see us going a lot higher without some kind of giveback first.
The daily scores above continue to display the bearish divergence between the RumWave chart and all of the major averages. Interestingly, there is not only a divergence between the RumWave chart and the DJIA, but the internal components of the RumWave are also displaying a MASSIVE bearish divergence. I haven't seen this happen before, so it is uncharted territory (pun intended.)
The charts of the DJI, SPY, and QQQ (above) show almost no signs of weakness going into the close. However, after action trading is pretty ugly on the QQQ as a result of AAPL.
I hate to be a perma-bear, but I can't help it based on the information I have. I just hope that people chasing this trend don't get completely crushed.
GOOD LUCK TOMORROW!
TSP: G Fund
401k / IRA: Safety
Questions or comments? Email me: rumwavetrading@gmail.com
Follow me on Twitter: @RumWave
Posts
No comments:
Post a Comment