Wednesday, February 01, 2017 8:15:16 AM
SPX and OEX bulls have something to prove with the internals by no later than February 10th,
or trouble is likely headed to the US Equity Markets - time will tell. Watch your risk/reward viewpoint and remain objective about the February period through the Options Expiration is my single point in this post. Having exposure in the market is nothing more than a #'s game these days, so objectivity about the actual #'s as they develop is required. I believe February 2017 has the high potential for parting retail traders from their pocketbook unless exceedingly watchful.
Important - Bullish Percents Indices, admittedly still near their upper value ranges, have pulled back for several days NOT confirming the price action for the week ended January 27, 2017 -
all this means is vigilance going forward on these internals for each index
bears want to see the BP's back below their November 2016 lows, and want to see multiple indices printing lower highs by their Bullish Percents Index
(see any of the Dorsey Wright books about Point and Figure Charting for depth about the importance of vigilance regarding Bullish Percents Index)
heads-up: $NYSI below the +750 level can be a bull trap, so be advised this represents another vigilance item. Holding above the +500 level is constructive for the bullish case, but holding below the +750 level for more than 12 weeks following the rise above +500 would represent a clue for high caution if a long-term bull who is holding from June 2012 or from February 2015 or February 2016
or trouble is likely headed to the US Equity Markets - time will tell. Watch your risk/reward viewpoint and remain objective about the February period through the Options Expiration is my single point in this post. Having exposure in the market is nothing more than a #'s game these days, so objectivity about the actual #'s as they develop is required. I believe February 2017 has the high potential for parting retail traders from their pocketbook unless exceedingly watchful.
Important - Bullish Percents Indices, admittedly still near their upper value ranges, have pulled back for several days NOT confirming the price action for the week ended January 27, 2017 -
all this means is vigilance going forward on these internals for each index
bears want to see the BP's back below their November 2016 lows, and want to see multiple indices printing lower highs by their Bullish Percents Index
(see any of the Dorsey Wright books about Point and Figure Charting for depth about the importance of vigilance regarding Bullish Percents Index)
heads-up: $NYSI below the +750 level can be a bull trap, so be advised this represents another vigilance item. Holding above the +500 level is constructive for the bullish case, but holding below the +750 level for more than 12 weeks following the rise above +500 would represent a clue for high caution if a long-term bull who is holding from June 2012 or from February 2015 or February 2016
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