What is the danger signal today? Note that the Dow has gapped up in the overbought condition. What does this illustrate? Exuberance in the overbought condition. The NASDAQ and the S&P 500 are not demonstrating the same bullish consensus. Watch the Dow. If it starts selling off from these levels, be prepared to start taking profits. The Dow has to maintain its strength Today to not demonstrate a reversal in the overall market trends.
October 18th Daily Market Comments
What is the danger signal today? Note that the Dow has gapped up in the overbought condition. What does this illustrate? Exuberance in the overbought condition. The NASDAQ and the S&P 500 are not demonstrating the same bullish consensus. Watch the Dow. If it starts selling off from these levels, be prepared to start taking profits. The Dow has to maintain its strength Today to not demonstrate a reversal in the overall market trends.