I understand the reasoning that if it closes below the lower BB
band the system calls for a rally, but I hardly call a one day
decline of 5 points in the SPX leading to a oversold condition when
it has been going straight up nonstop for weeks. Steve and Matt
have been saying for a couple weeks how extremely overbought the
market is so I hardly see how a 5 point SPX decline can make things
oversold after a 2 week 50 point advance. Maybe this is one time
the system should be ignored?
those type of indicators can recycle and plus those signals
don't have any time frame, they could be at major bottoms (not
here) or could play out for a one day bounce only. The market could
bounce 5 points on Monday and that would be enough for example.
There's no MACD divergence on a 60 min SPX chart, another quick pop
would set that up. Don't over think it
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How in the world can the NYMO be oversold??
Posted by victorh on 7th of Oct 2017 at 05:09 pm
I understand the reasoning that if it closes below the lower BB band the system calls for a rally, but I hardly call a one day decline of 5 points in the SPX leading to a oversold condition when it has been going straight up nonstop for weeks. Steve and Matt have been saying for a couple weeks how extremely overbought the market is so I hardly see how a 5 point SPX decline can make things oversold after a 2 week 50 point advance. Maybe this is one time the system should be ignored?
those type of indicators can
Posted by matt on 7th of Oct 2017 at 10:55 pm
those type of indicators can recycle and plus those signals don't have any time frame, they could be at major bottoms (not here) or could play out for a one day bounce only. The market could bounce 5 points on Monday and that would be enough for example. There's no MACD divergence on a 60 min SPX chart, another quick pop would set that up. Don't over think it