TRADING DP

[TREND1]

12/7/16

Ultra-Short-Term Indicators: Now these are what I would call climactic readings. They are coming on the cusp of a new upward trend started at the pullback low. I would read these as bullish initiation readings. They are coming off of declining and then negative readings. This could likely be a repeat of what we saw at the beginning of July. A small pullback (7/1 - 7/3) followed by a breakout move accompanied by similar climactic readings. If you want something to worry about, the VIX has now penetrated its upper Bollinger Band which is typically a sign of a price top. As I pointed out in today's webinar, it isn't unusual to see the VIX stay steady in overbought territory


Conclusion: Today's fireworks were impressive. Indicators suggest that the rally isn't likely over. We could see another pause, but if the indicators are correct, more records are likely to be broken