TRADING DP

[TREND1]

11/21/16

Ultra-Short-Term Indicators: Slightly elevated readings on the CVI and Participation Index - UP. These readings had been in a declining trend but today's readings interrupted. The VIX is starting to reach for the upper band, but there is more white space to conquer. I still expect a short-term rally exhaustion.



Conclusion: While this rally looks impressive, a steep upward trend is difficult to maintain, especially if volume doesn't pick up and excitement stills. More than half of upside breakouts above resistance result in a "throwback" (Bulkowski) or snapback toward the breakout point. The indicators continue to suggest a short-term breakdown or throwback followed by higher prices in the intermediate term