The market resumed marching upward after it consolidated for a couple days. It is staying in a pretty narrow range on the hourly chart. The uptrend still has to be respected at this point.
It is overbought in all 3 major timeframes-Daily, Weekly and Monthly. I continue to make some long trades, but am hesitant to do anything for very long. This is a market that is ahead of it’s skis in pretty much every way. However, to bet against it would be a fool’s errand. Instead, trading cautiously is the name of the game. With how overdone the market it, this is not a time to be greedy!
The Capitalized NHNL is showing weakness which makes me think a pull back is coming soon. It is not weak enough for me to think it is imminent
Much of the weakness is from the NH. There has has not been much building in the NL
The NHNL is also weakening
The Rolling 52 Week NHNL has returned to normal bullish territory.
Seasonally, June is not as strong as April and May, but still good. It is like taking a breather before July comes around. Over the last 20 years, July has been the best performing month for the market.
All this tells me is we may see some brief pullbacks, but the market’s direction is up. Overbought be damned! The FOMO is too great to overcome at the moment! The party continues!
When the party does finally break-up, the hangover will be tough for a lot of people. That will be the time to be greedy!
