Every time we hit a peak and pulled back for the most part you got some sort of retest of the highs.
One look at the charts below tell the story and we can sum it up in three words when we look at the 60 minute charts of the OTC Comp. Dow and S&P 500.
“Danger Will Robinson “
Seriously look at the blue and green circles on the charts below. THAT is major negative RS divergence.
As you can see, everyone of these indexes are saying the same thing. Retest of highs on major negative RS divergence.
Yesterday it was dare we say? Today? We double dog dared ourself to say it and we’re saying it right now CLIMAX RUN. Gosh with this vertical move up in these follow the leaders it really makes one wonder just how much ammo these names have got left in them on earnings season. It makes one wonder if earnings are being priced in. Aside from these names though a fair amount of the follow the leaders are just going sideways which may explain the negative RS divergence in the indexes IE concentrated to a few names.
You have got to be out of your mind to chase something like this.
Gosh where is the nearest support now that this issue broke into new highs and the pink line POH? You got it – 88.00 . Then maybe we’ll look at it again.
Notice today’s bar? It’s near the lows of the day. That’s not buying here, it’s distribution while you have a ready, willing and able emotional herd to sell to.To learn more, visit our blog site and sign up for our free newsletter to receive our free report — “How To Outperform 90% Of Wall Street With Just $500 A Week.”
Disclosure: No positions