TRADING DP

[TREND1]

3/15 Ultra-Short-Term Indicators: Highly climactic positive readings appeared on both the CVI and Participation Index - UP. While this does have the earmarks of an initiation climax (initiation to higher prices), the VIX is troubling. It just penetrated the upper Bollinger Band which usually means a decline. It didn't close above that upper band, so there may be another day or two of higher prices based on the initiation climax. I don't think one rally day constitutes a buying exhaustion.



Conclusion: Short-term indicators remain positive and today's initiation climax on ultra-short-term indicators suggests a bit more upside. Meanwhile intermediate-term indicators are bearish as they drop. The last time these indicator tops didn't yield a correction and I suspect given today's rally on a rate hike that we won't get one yet. More than likely the market will begin moving sideways again.