Market Bullish Tendencies Keep Rolling on

The market is zooming right into April and the previous monthly MARIBUZU (almost a maribuzu) candlestick is so far evolving into anther maribuzu candlestick for April.  The market is strong. There is no denying it.  The WEEKLY relative strength index is getting close to busting into the 70th percentile powerzone which is a rare but potentially very powerful occurrence.

It seems that I ought to heed my own advice more of the time.  I wrote some days ago about how I would not be interested in trading the inverse ETFS or going short the market in any other form until the 50 day moving average crosses below the 200 day moving average.  Since the last 2 days market action that seems like brilliant advice.  But I didn’t even listen to it myself.

There is too much opportunity elsewhere in various markets right now than to be obsessed about trying to pick an exact top (and by the way the top will not be ‘exact’ when it does come, it will in fact be messy sloppy and slow moving which will make it even more difficult to identify).

So lets hope I heed my own advice in this post again as we see the market relative strength index approaching the 70 level on the weekly charts.

Tape reading says that the market continues to show reluctance to go down for more than only brief periods of time.  Then those corrections are used as a way to pull the market into overbought territory again.  The market pushes the oscillators and the indicators to extreme limits, then trades sideways or only slightly down to get them into oversold territory and then pushes higher again.

This is the reason why I think so many are dumbfounded at how the market can keep pushing higher like it has without significant pauses.

Don’t worry, there will be a correction at some point, I guarantee that.  But until and when the 50 day moving average crosses below the 200 day moving average, it will only be a shot gun correction in a persistently bullish trend.

Posted in ETFS, Index Trading, Market Timing

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