The Vix is finding support near previous tops in the high 30’s. The RSI fails to fall below the 40 area and stay there, indicating it’s still in a bullish trading range, which typcially is in the 40-80 range. On the flip side a bearish trading range would be 20-60. The ADX has been slowly moving lower gearing up for a big move in one direction or the other, and given that the overall trend is bullish, it’s a good bet that it’s going to continue in that direction. This will be bad for the overall markets.
Internally we are overbought and getting rejected right at resistance, when you’re looking at the number of stocks on the Nasdaq that are over their 50ma. Yes we can still continue higher, but the odds are definitely against it at this point. A 35% run up on the Nasdaq is about all any good bull can hope to get over the last month.
Bulls and bears make money, but pigs get slaughtered.
