The key take-away today is: Not much change from yesterday.
My daily sum of 20 Indicators improved
from +4 to +5 on 7 Nov (a positive number is bullish; negatives are bearish)
while the 10-day smoothed sum that negates the daily fluctuations slipped
from +47 to +46. (These numbers sometimes change after I post the blog based on
data that comes in late.) A reminder: Most of these indicators are short-term.
RSI is now Bearishly overbought (85) and that gives us one topping indicator that is calling a top.
In addition, we have the statistical analysis of price-volume moves suggesting a top within 20 days. This stat also suggests a 1 to 2% down day is coming soon after that top. (I don’t use this in my topping indicators because its timing is poor. It’s hard to trade an indicator that warns of an event sometime in the next month or so.)
I remain bullish long-term, but I am getting cautious short-term. I will exit my 2xS&P 500 trading position today.
