…when you consider the deterioration of the Nasdaq advance/decline line. It continues to make lower highs and the -DI of the ADX is on top and looks to be ready to break out of the recent consolidation. The RSI turned back near the bearish 60 level and has been making lower highs and lower lows since the beginning of the year.
Of course it’s not a given as earnings could always please investors, but as trader’s we have to work with the data that is at hand. And while it’s tempting to jump back in on the long side, it’s not prudent at this point until some key indicators start to firm up. You don’t want to row against the underlying
I added to my shorts (1/2 position) near the open and may look to add some more later in the afterhours if my signal remains weak. If I add I’ll update this post in a few hours from now.
