2/21 Ultra-Short-Term Indicators: As noted in today's headline, our ultra-short-term indicators were hit with climactic readings. These readings are arriving during a strong rally. By my DP rule of thumb, I see these readings as emblematic of a buying exhaustion. Admittedly I've been calling most readings after the initial positive spikes buying exhaustions too. The last one was followed by Thursday and Friday's cooling period. Remember these indicators are very short-term, meaning they track to hours to days.
Conclusion: Short-term indicators suggest a decline or pullback is imminent. Given the bullish intermediate-term indicators, I'm not expecting a correction; more likely a small decline or consolidation. This somewhat manufactured rally is concerning. There will likely come a time when bullish exuberance will wain as buyers dry up.
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