RSI suggests a pullback is coming:
During the last 15 years, everytime the RSI on the weekly chart, came close to the oversold levels, I had seen a bounce; I do not believe this time it is going to be any different. I expect to see a strong sharp rally from the current levels, which will catch all the shorts off guard. The time to enter a short, has currently passed and it is now time to be positioned for a bear market bounce.
Respect the age old pattern ‘The Doji’
The Japanese candlestick style of trading has been in use for centuries. One of the most important and reliable patterns, is the “Doji”, which is a candlestick representing indecision. I have noted that going back to 2006, whenever the market made a doji pattern, at major support levels, it was consequently followed by a considerable bounce. The pattern displayed on January 20th, 2016, is one such pattern, which will take US Equities higher.