A sideways day on the market helped our short-term indicators back off from becoming further overbought. Looking at the 10 minute bar chart the SPX traveled pretty much straight across left to right closing slightly below the open. Not too exciting.
The daily chart shows we are sustaining market highs with no real pullback... yet. We still have overbought indicators. Granted there is still room for them to become further overbought, but we need to be careful until they are cleared.
The CVI has moved back toward neutral and the STVO topped. This neutral day caused these short-term indicators to lose some steam, but the medium-term VTO has more room to advance, as do other medium-term indicators.
Gold has now fallen below the long-term rising support line on the daily chart below.
Just as pessimistic for Gold is the weekly chart where we can see a sizable drop below support and the 17-EMA, and a very negative PMO.
Bottom Line
A sideways market day has prevented our short-term indicators from becoming further overbought, however they remain overbought. A pullback to the rising trend line would clear this condition. Our recently generated Neutral signal on Gold is looking good as the daily and weekly charts are starting to look pretty ugly.
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SIGNALS: Here we include a picture of the current day's signal table to provide a kind of archive that can be referenced in the future. To access the current table with active links see the Decision Point Alert Daily Report.)
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Technical analysis is a windsock, not a crystal ball.
