I am back to a neutral signal for now. The tape is not breaking down by any means. Maybe it will later this month, but for now it just seems like we are not going to get any major sign of weakness in the market yet.
It looks as though earnings season the next couple of weeks is going to prop up the market for a bit longer.
I although thought the UUP would get a fast break up soon. It may still do so and cause the market to take a hit but for now it is struggling a bit at the top of the recent resistance range.
This market is a very difficult one to time with traditional oscillators such as MACD. It is a very strong trending market and continues to ‘pull’ the MACD high despite all the sell signals.
My previous strategy of simply respecting the tape action of the market still seems to be the way to go. We have still not broken the up trend line by any significant means.