Monday, February 13, 2017 10:55:22 PM
2/13 Ultra-Short-Term Indicators: Climactic readings continue. At this point, they are very high readings indeed. Given the nearly straight up rally preceding these readings, it looks like these climaxes are exhaustions. I'm expecting sideways or lower prices this week. The VIX is healthy, not overbought/oversold, so it may take another day or two before we see the exhaustion.
Conclusion: We've gotten very high climactic readings on our ultra-short-term indicators and short-term indicators are getting overbought. There may be a bit more rally to be eked out before a pullback, but I would expect to see prices reach about 228 for the SPY. IT indicators are turning back up, but haven't quite shed the declining trend they are in, so I'm reluctant to move too bullish in that timeframe (weeks to a month or two).
Conclusion: We've gotten very high climactic readings on our ultra-short-term indicators and short-term indicators are getting overbought. There may be a bit more rally to be eked out before a pullback, but I would expect to see prices reach about 228 for the SPY. IT indicators are turning back up, but haven't quite shed the declining trend they are in, so I'm reluctant to move too bullish in that timeframe (weeks to a month or two).
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