oversold and overbought are ancient technical analysis. They do not work. If they do work, why did many traders went short when es began going up from last yr october - april 2011 thinking the market overbought. In fact, more traders went short in jan thinking the market is overbought. The fact is, they do not work because more than 90% of small traders lose. They just lose!!!
You answered it yourself. See the last sentence. So the lesson for runts who wear both a belt and suspenders (can't even trust their pants to stay up ) is .... when the crowd goes one way, you look for the exit .... namely, in this case, the LONG signal on 1H. Dig?
S&P500 weekly chart shows a rising wedge enclosed within a megaphone top. Be careful folks, the naughty Black Swans want to party... stockmarket618.wordpress.com/2011/06/01/wed-june-1
Futures jumped on China inflation numbers, go figure. Now our markets move on inflation numbers out of China, ha. Anyway I am sure the bulls are looking for a 1-2% rally and I think after todays flat closing tomorrow should be a better day, I am thinking once they rally the markets a solid 1%+ you will see a follow through rally lasting days if not weeks. I dont think they will let the SPX fall below 1250.....time for the markets to be propped up before QE2 is finished at the end of June! Stocks Close Mixed; Dow Still Below 12,000 S&P FUT 1273.30 7.10 +0.56% DOW FUT 11948.00 63.00 +0.53% NAS FUT 2230.25 10.50 +0.47%
No doubt about it - the bearish euro daily chart is increasingly influential over smaller time frames - thus USD strength continues.
Shortie, place a cushion under your butt when driving, please - you're scaring the shit out of the HERD as they see the driverless car zip by.