Becoming more overbought

Due for a pause in the action


Yesterday I wrote that I expected a pullback today.  That did not happen and the market decided to push a bit higher.  While that may seem like a good thing, it just pushed us further into overbought territory.  The RumWave is still suggesting there is more upside, but I think we will see a little snap back before moving to new highs.

The daily scores above show some solid pushes into orange-red territory.  The internal components that make up the 4 hr and Daily scores also displayed several "red" numbers.  



On the 4 hr chart above I have highlighted a bearish divergence between the higher highs on the candlesticks and the lower highs on the RSI (yellow lines).  This is a signal that a pullback is probably just around the corner.



 The slow stochastic on the daily chart above is at 91.8.  This is a high number.  It usually doesn't go much higher before turning down.

Overall, I am still holding my long positions.  I expect a pullback, but the RumWave is not producing a sell signal so I will wait until then to take profits.

GOOD LUCK TOMORROW!