Potential Reversal Coming Soon but we might see some more upside
Updated
This market rally has been insane!!! with several consecutive weeks going up nonstop (got to admit it is starting to hurt me a little), but we might see a reversal in the next few weeks. I would NOT say a reversal is imminent as there needs to be a catalyst to trigger a sell-off and the market only seems to be going up based on China-US trade hopes and the Federal Reserve 180 turn and completely ignoring all the bad data that has popped in the last few weeks.
With that said, we finished this week with a hanging man candle showing on the weekly chart which is indicating that there might be some sellers out there and that the buyers might not be willing to push the market much further. I still see some room to the upside to around 2811-2836, but there has to bee some sort of extraordinary event in the next weeks to push the market up to the 2870-3000 levels (I think odds highly favor a pullback).
On a daily timeframe there RSI is giving overbought signals and the MACD has already diverged and started to cross the signal line. We still have to see what happens next week but I feel the current state of the market is very fragile and when it breaks it will break hard.
With that said, we finished this week with a hanging man candle showing on the weekly chart which is indicating that there might be some sellers out there and that the buyers might not be willing to push the market much further. I still see some room to the upside to around 2811-2836, but there has to bee some sort of extraordinary event in the next weeks to push the market up to the 2870-3000 levels (I think odds highly favor a pullback).
On a daily timeframe there RSI is giving overbought signals and the MACD has already diverged and started to cross the signal line. We still have to see what happens next week but I feel the current state of the market is very fragile and when it breaks it will break hard.
Note
Worked just fine, we got a reversal candle and BOOM! we got our pullback. Expect it to reach about 2730, if it breaks that level we are open for the 2700
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