Below is a snapshot of the SPY. I've placed some red arrows to show what has alerted me to a possible sign of exhaustion. The Heikin Ashi candle under the red arrow has what I'm calling a "dirty" bottom. Meaning, there is a wick on the bottom of the candle while all the ones leading up to it were clean. The Slow Stochastic is pointing down and the MACD is at a crossing point. I'll be looking for a red candle tomorrow to confirm the trend change and I'd like to see the RSI slope down as well.
Below is a 4 hour chart of the QQQ (NASDAQ.) Apple gave it the excuse to print two red candles with clean tops, a descending RSI, a descending slow stochastic, and a declining MACD with bright red histogram candles of increasing size. It had met 5 of my 5 criteria for a short term purchase when I looked at it around noon today.
These signals are not RumWave medium term sell signals. Rather, they are short term directional changes. Any plays at this point are of "gamble" quality.
GOOD LUCK TOMORROW!
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