There is a warning flag today. Where do most people buy? They buy exuberantly at the top. Exuberance can be illustrated with a gap up in the overbought condition. This is what has occurred in the Dow and the S&P 500. Does this mean the uptrend is over? Not necessarily, but be more diligent as far as watching for the selling/sell signals. Continue to stay long but be prepared to take profits if today’s strength starts dissipating.
July 14th Daily Market Comments
There is a warning flag today. Where do most people buy? They buy exuberantly at the top. Exuberance can be illustrated with a gap up in the overbought condition. This is what has occurred in the Dow and the S&P 500. Does this mean the uptrend is over? Not necessarily, but be more diligent as far as watching for the selling/sell signals. Continue to stay long but be prepared to take profits if today’s strength starts dissipating.