July 28, 2017

Market Nearing Short-Term Overbought Extremes

IT’s late so I am keeping it short tonight.

The market pushed higher today and is now nearing a short-term overbought state.

China, Gold Miners and Real Estate have all moved into short-term overbought extremes so I would expect to see a short-term reprieve in those three ETFs over the next 1-3 trading days. All three ETFs have RSI (2) readings that exceed 97.5 so the probability of a short-term reprieve is high.

Tomorrow morning brings the ADP report so I we could see a very good opportunity to enter a position. If the market gaps higher, preferably one on the ETFs I mentioned then I would expect to see a trade in the strategy tomorrow. With that being said, subscribers stay on the lookout for an email, tweet , etc.