Caution On The Long Side Is Advised
Courtesy of David at All About Trends
Resistance and overhead supply levels are still in play.
“On The 3rd To 4th Day Watch for a Reversal”
Today is Day 4 and the indexes are struggling. Do they sit here and work off the overbought condition of the full stohcastics and reset themselves for another move higher, or is this it? We’ll soon find out. In the meantime, one could say we are in the zone and it’s at these levels we will nibble today on a few issues on the short side.
Even AAPL came up to its uptrendline from underneath, kissed it and has started to pullback today. That’s a KODR or Kiss Of Death Retracement pattern so far.
In Summary:
The bottom line is each index is pushing the 50 day average with a resistance level just above that as shown in red on the daily charts. The 60 minute charts are overbought. We’ll see what happens the next day or so.
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