Look back over the past, with its changing empires that rose and fell, and you can foresee the future too.

— Marcus Aurelius


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Thursday, February 2, 2012

Equity markets in need of a rest?

Looking at the daily charts of many indices it looks like they need a pause at least before moving higher..

here's the DAX DAILY

Reasons for a correction

1.RSI in overbought levels
2. Maybe some late longs ie weak longs in near the highs

BUT the trend is UP, so unless very nimble best to wait for correction to get long again.

also looking at the WEEKLY chart

Can see that not overbought, and looking at past moves up they can get quite long in the tooth before a significant correction occurs.

NFP out in US tomorrow so could be some volatility ahead and after the numbers.

Stay nimble and look to buy pullbacks

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