We had an “outside” bar with a higher close in July. The portion of the bar below the June close was a hesitation in the strong bear market rally from the March low. The rally then resumed and punched through the 923-930 target range calculated at the end of May as well as the 971 target and short (red) moving average. The next target up is 1012-1028.
The monthly chart perfected its TD Buy Setup in February and has worked out quite well. Since countertrend rallies usually only last about 4 price bars in time we have reached the period when we need to watch for the resumption of the downtrend.
Bottom Line: The monthly chart remains short term bullish but argues that longer term investors should remain wary of equities -- this is the first time the TD REI oscillator (top pane) has moved into overbought territory since 2007!
No comments:
Post a Comment