I just wanted to drop a quick note on something I'm seeing in the S&P cash index. You can see my custom indicators at the bottom which tracks signals in all of the S&P 500 stocks. The top indicator has a yellow histogram showing how many stocks are oversold minus stocks overbought, which stands at 173. Although this is a very high number, it can stay oversold for a long period of time. So next, I look at the bottom indicator which tells me how man stocks have CONFIRMED. a bearish reversal minus those with bullish reversals. You can see that there are 157 more confirmed bearish stocks. This is an extremely high number and predicts a pullback in the S&P very soon, either later today or early next week. This is on a 5min chart so the decline may only be 10 points or so, but if bigger timeframes start showing me bearish confirmations then this could be predicting a much larger reversal is coming.
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
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