Stock Market Fiscal Pop-N-Drop Warning
By: Chris Vermeulen
Jan 02, 2013
Today’s gap higher in stocks has many investors feeling really good about but will this rally last?
My to the point answer is “Yes” but there will be some bumps and navigating positions along the way.
Looking at the charts below you will notice how stocks are trading up over 4% in two trading sessions and several indicators and technical resistance levels are now being tested. Naturally when several resistance levels across multiple time frames, cycles and indicators we must be open to the idea that stocks could pause or pullback for a few days before continuing higher.
Here is a quick snapshot of charts I follow closely to help determine short term overbought and oversold market conditions.
This chart helps me know when stocks are overbought or oversold. This trend can be follows using the 30 or 60 minute charts helping you spot short term tops and bottoms.