I am not saying we wont go lower, but we could just fake out the short traders and head for one final push higher. This type of move is what I would consider a reset, but I would only go long if this Stoch. does cross up.
Wednesday 30 January 2013
BEWARE!!!
I have attached a chart of the CPCE Inverse, and as you can see at the bottom of this daily chart, we have a stoch. that is down trending while the SPX made higher highs. What I am warning here is that we should be looking for this to cross up since its near the bottom. Although it happens, it is very rare that the Stoch. stays at overbought / oversold for a long period of time. The only time was in May 2012 which brought down the SPX to its June LOW.
I am not saying we wont go lower, but we could just fake out the short traders and head for one final push higher. This type of move is what I would consider a reset, but I would only go long if this Stoch. does cross up.
I am not saying we wont go lower, but we could just fake out the short traders and head for one final push higher. This type of move is what I would consider a reset, but I would only go long if this Stoch. does cross up.
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