Above are the internals of the market this morning and again it shows that the rally of the past few weeks is laboring greatly as pushing higher today. This condition can last for days, but as long as it continues it means the reversal should be sharp and decisive to the downside when it gets underway.
Basic momentum indicators such as the MACD and RSI shown above are illustrating a bearish divergence in the tail end of this rally. Again, these indicators are not good for timing a move or reversal, but it does tell us that as it stands now, this rally is weakening significantly. This can change with a strong upward push on strong volume and internals, pushing these momentum indicators higher, but that hasn't happened yet. So as long as this feeble internals exist during this rally, then I would not be long and would be positioning myself to the short side for a possible monster wave 3 reversal to the downside starting at any moment.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.
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