We have a triple--nearly quadruple--top on the EUR/JPY pair and with the ECB doing anything to talk down the euro this could be a nice short opportunity. The other thing to notice is the last 4 highs/attempts to break the top have been accompanied with lower highs on the RSI, clearly momentum is to the downside.
The first target should be the bottom of this...
This chart shows how the three major US indices have performed since the current bull run in stocks began in March of 2009; the Nasdaq is in blue, the S&P in red, and the Dow in black.
Clearly the Nasdaq has been the leader of the pack for the duration of the rally while the Dow has been the laggard. While short term is does appear stocks are overbought, an...
The past week has seen the S&P really get ahead of itself. The past two highs have been accompanied by lower highs on the RSI. When you look at Money Flow--which is basically RSI but also accounting for volume--you see the divergence is rather significant. While a move down the 50 EMA could be expected, it is silly to short this levitating market at the moment.
