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