US Stocks Multiple OB signals Piling up - IC Charts

Published: Sat, 10/07/17

     

Dear Members,

07 Oct 2017

The week marks the most relentless rally from the US Indices as some other markets try to play catch up. But at the end the markets positioning is clearly getting overbought on many counts. This chart of the CFTC net positioning fro Hedge Eye shows that positions in Dow-Mini Futures are the highest an a multi-asset class positioning.

Image
 Now it was just two days ago that I published this chart of the Dow saying...
"The Dow Monthly RSI at over 80 is the highest since 1997, and in wave V of 5 since 2016 as shown here, and close to the upper end of a channel [log scale] from 2011." The upper end of the range was reached in two big moves
Image
The extreme readings are not only on the Dow Jones Industrial Average but spread to the Russel and Transports too. In fact after the months of under performance these indices suddenly took off and made new highs in one sided vertical rally. And in the following post I noted "The Russel 2000 of small stocks has had a one sided move up, pushing the RSI to 85 on the daily charts, the highest reading since 1997" So that soon got followed up by the Dow and S&P. And the only index that is not there but starting to play catch up is the Nasdaq. That might continue to do so into the next week even as the other overbought segments try to hold on to their gains. But as everything capitulates on the upside the risk will be to the down side in the Medium term
Image
 I say that as other indicators like the Daily Sentiment Index for the S&P is back above 80 % as seen on this chart from Tom Thornton. And Finally I leave you with a short video on Risk from HedgeEye.
Image
  McCullough: Why I Signaled Sell the Dow
Video
Image

Don't WAIT for this update! GET Nifty Daily Weekly and the Monthly Long Short report and everything else directly in your mailbox

STAY AHEAD of the market turns. 3 Steps away. And WORTH many times more than what you pay.

Go here SUBSCRIBE NOW 

JOIN BUTTON

CCAVENUE - 9$ / Rs.600 PER MONTH 

 

 
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Rohit Srivastava
www.indiacharts.com
For accurate market forecasting. Market forecasting is a study of past data to assess
future probable outcomes. It is our endeavor to discuss high probability outcomes for
traders and investors. However this is not a solicitation to buy or sell stocks futures or
options or any security. Trading in any financial market should be done with sound
knowledge and the help of a qualified investment adviser. Stocks based on the Elliott
wave model are based on the Fibonacci fractal of the market and momentum indicators,
targets are based on Fibonacci maths and are only indicative of what the mathematical
model throws up. This is not a recommendation to buy/sell.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~