14:55
Unknown
Melt UP means market take off on heaviest volume for days and weeks.....
Correction may be on the horizon......
There are many sign that this rally may be heading towards a correction....
VIX has been trending UP with higher market......
Bull Bear ratio has gone into extreme not seen in 30 years...
Bears are awfully close to 1987 number...just before a major crash....
SO Bulls are 66.7%
Bears are 12.7%
These ratios are very alarming....and may have gone into more extreme number since Wednesday Jan 16th tabulation....23rd January ratio could be downright scary......
RSI has been trending into extreme also...here are key RSI stat :
Dow 83.52
S&P 500 80.60
Nasdaq 78.41
SOX 71.21
RUT 66.49
All of the above RSI numbers are in " serious overbought " condition based on old definition of 60 being overbought and 30 being oversold......
SO...IF we look @ 3 key indicators.......Bulls bears ratio.....RSI......& VIX....they are all heading into a " troubling zone "......
Before, we were dealing with RSI only as being overbought for a while ...but now Bulls / Bears ratio are confirming a corrective signal.......
Now the question is....will it start this Monday or next Monday or the Monday after....nobody knows...
In the meantime, we can start to book profit in overbought positions......
It will be prudent to wait for a correction before we " redeploy any finds back in market "
Good luck with your own interpretation of this TAPE.
BLOG does NOT give buy or sell.
Saleem
Posted in: Mixed
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