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CURRENT MARKET TREND: Up 5/27/16 @ 2090
Stop-loss 2026

Thursday, June 26, 2014

Bullish Complacency About to Turn Bearish

The equity put/call ratio is now below the level reached in January of this year. Once this turns up a correction is probably at hand.

The bullish percent index has put in indicator divergence on the new highs. The ADX is also at a level that when it rolls, should issue an equity sell signal.

We are close to the 20-40 pt. range that the SPX ADX signal issued a sell signal marking a top.

RSI negative div on SPX:VIX. RSI below 50 is generally not good for SP-500 (currently 52).

1 comment:

  1. Great analysis, Jim!

    What's you opinion; If the market turns bearish will the US Dollar be viewed as a safe haven and go up or will the dollar go down reflecting the recent weak economic indicators? It's currently at a critical level technically.