As I said yesterday I thought that it looked like consolidation and that there would be a move to test the top of the range. Check.
So now is where things get interesting. My 60-min Trend System issued a (quasi) sell signal today. See here and here (These updates are sent out as part of my Trend System Notifications).
Now I say a quasi sell signal because my main indicator has not officially triggered one. It is slowing down but it isn't there yet. However:
- 3 secondary indicators have issued sells (these are normally confirming indicators)
- The move has gone back to the top of the range (resistance for the last 2+ months)
- The move is overbought on several <=60 min timeframes
- My system made 10% off this move in about half as many days.
So I am calling it good :)
I will just wait to see how this overbought condition resolves itself and wait for the next 60-min signal to materialize.
However, like I said on Monday, my Daily System issued a buy signal. So that means whatever happens in the next couple of days, I think there is more upside to come in the following weeks. I still think the risk on the intermediate term is to the upside, not the downside.