I am switching to a BOT long signal this AM at 1298 on the sp500. It appears we are about to ascend through 1300 which is a key level for the market and which could provide as a catalyst for more upward momentum.
I had written quite some time ago that sometimes during momentum markets we see the market indices move the relative strength index into the power zone above 70 and then RESET itself by moving the RSI back down to the 70 level. This appears to be exactly what is going on right now as the market works off overbought levels with minor consolidations. This seems characteristic of parabolic trading environment and true momentum. Again, a very dangerous environment to be short.
So long again for now as we head into the end of January. Indicentally the end of January will be another important close for the market as we will get the month end closing candlestick. If January ends up be a Marubozu candlestick it could be very telling indeed.