Cobra's Market View Private Messaging System shows:
|Trend||Momentum||Comments - Sample for using the trend table. Warning: This is NOT a trading recommendation!|
|Long-term||Down||Idea for trading intermediate-term under primary down trend.|
|Report Focused On||Buyable dip or the market topped?|
|Today’s Summary||Market still easily goes to overbought. Pay attention to CPC.|
Some overbought indicators have been corrected by the pullback today, however they may easily get overbought again if the the market goes up again tomorrow because the correction is not big enough. My suggestion is to pay attention to 2.8.1 CBOE Options Total Put/Call Ratio. Should the market goes up and CPC does not dive below 0.8 but rises instead, be cautious. In other words, I believe the CPC is not a contrarian indicator and it leads the market. Now let’s review the overbought conditions of the market.
0.0.2 SPY Short-term Trading Signals. NYADV is overbought, TICK and NYMO are close to overbought although they have been corrected a bit.
1.1.4 Nasdaq 100 Index Intermediate-term Trading Signals. Both STO and ChiOsc are too high, so is the NDXA50R at the bottom (I have been repeating this over and over again…).
1.0.2 S&P 500 SPDRs (SPY 60 min). The obvious negative divergence on RSI and MACD can only be resolved by a big rally, otherwise there will be a pullback.