We have hit exhaustion. We finally made it to 2200, and we did it in parabolic form. Similar to the trajectory of a rocket.
Today we closed above 2200, but not without a day of wrestling with a bear. We posted a hangman candlestick which usually concludes the end of a trend. Furthermore, volume was very light and below average. Every time we have posted a hangman, doji, or shootingstar on light volume and an overbought (RSI) market we have reversed. Today we see the same. This is showing exhaustion. This coupled with higher interest rates, and an impending rate hike, show some struggles for the bulls to come. As a historical note, the 10-yr T-Note is at the same level from a year ago. And both times we were going into a rate hike. Trade with caution.
Let me know your thoughts in the comments section.
Today we closed above 2200, but not without a day of wrestling with a bear. We posted a hangman candlestick which usually concludes the end of a trend. Furthermore, volume was very light and below average. Every time we have posted a hangman, doji, or shootingstar on light volume and an overbought (RSI) market we have reversed. Today we see the same. This is showing exhaustion. This coupled with higher interest rates, and an impending rate hike, show some struggles for the bulls to come. As a historical note, the 10-yr T-Note is at the same level from a year ago. And both times we were going into a rate hike. Trade with caution.
Let me know your thoughts in the comments section.