TRADING DP

[TREND1]

1/4 Ultra-Short-Term Indicators: Speaking of buying exhaustion, we had very climactic positive readings today. It could be read as an an initiation, but we had two very positive rally days and stop at overhead resistance. I think we are looking at a buying exhaustion. Notice that the VIX is on its way to the upper Bollinger Band which usually is a sign that the market will top in the very short term.


Conclusion: After two very strong rally days that brought price near all-time highs, the PMO and short-term indicators have turned up. Given the climactic readings on the ultra-short-term indicators, I doubt the rally will continue much longer. Of course if we get a strong breakout, we'll have to reevaluate.