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Chart coutesy of StockCharts.com
- We are in one of the strongest bull markets in history.
- Price is above all moving averages.
- 78.10 RSI is extremely overbought at these price levels. The risk/reward ratio here favors a short term pullback.
- MACD bullish cross continues to hold.
- The ATR continues to decline.
- The 10 day EMA has held as short term support for 11 trading days.
- Volume is giving no clues as it is about the same on both up and down days.
- This market has been great for trend followers and buy and hold investors but swing traders have been locked out and day traders are wanting a wider daily trading range.
- Bull markets still require strategic entries and exits for profits. If you are not in you have to wait for a good spot to get in, if you are in you have to have a plan to exit to lock in your profits. The profits are in the that planning process.
- I am looking to buy any pullbacks to short term support: the 10 day ema or the $230 price level.