Note the yellow highlighted areas on each of the following charts. Similar patterns were highlighted.
"History doesn't repeat itself, but it does rhyme" - Mark Twain
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| Courtesy of ChaikinAnalytics.com |
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| Courtesy of ChaikinAnalytics.com |
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| Courtesy of ChaikinAnalytics.com |
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| Courtesy of ChaikinAnalytics.com |
The stock indices are short term overbought and so are many stocks. On the January 20th bottom many indicators were in oversold areas indicating a bottom. At this point the short term is OB and the intermediate term is OS. If you saw the post on "SPY Chart Discussion" it is possible that the 1/20 bottom may be tested and probably during the dates Picasso suggested. (see Picasso post) But it is not necessary to work off this short term OB current status, but, it would help and be healthy for the intermediate term to then advance from it's OS condition.
If this scenario turns out to be correct, then it will be following the Average Election Years. This chart can be found in a prior posting on this blog.
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This
has been posted for Educational Purposes Only. Do your own work and
consult with Professionals before making any investment decisions.
Past performance is not indicative of future results
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