The equity markets have experienced a strong
bullish move during the last five days, however they are all nearing
conditions for a correction.
Monday is a Near Impulse day for all major
indexes and they are all flashing trend change warning signals. We are not
quite there but I suspect action on Monday or Tuesday will produce sell
signals and the decline will begin. How far will they fall? - no one knows but
traders should find more opportunities on the short side.
Overall, the markets appear healthy so I expect
it will take a major bearish impulse or a series of lesser bearish events to
precipitate a major decline.
Jim White
Pivot Research & Trading
Co.
PivotTrader.com