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.
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