Note that the Dow and the S&P 500 have gapped up in the overbought condition to trade above the 200 day moving average. The gap up in today’s trading should be an alert. The uptrend requires today’s indexes to continue to trade near the high-end of their trading range. A pullback towards today’s open would create the possibility of a gapped up shooting star at a major resistance level. Be prepared to take profits if the markets start selling off before the end of the day.
October 23rd, 2015
Note that the Dow and the S&P 500 have gapped up in the overbought condition to trade above the 200 day moving average. The gap up in today’s trading should be an alert. The uptrend requires today’s indexes to continue to trade near the high-end of their trading range. A pullback towards today’s open would create the possibility of a gapped up shooting star at a major resistance level. Be prepared to take profits if the markets start selling off before the end of the day.