“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Thursday, 5 November 2015

5 Nov 2015 - Still Bullish

Despite the negative day in the SPX, the overall sentiment short-term is still bullish.  The signal did push lower but still in OB territory so there is a lot risk to the upside at this point in time.  The intra-day charts today is a bit more bearish but still OB.  I mentioned that signals would need to push into OS and stay for a prolonged period to give a more sustained move lower.  This has not happened, so we look to tomorrow to see if we can get a picture of how the whole week has formed.  Being in this state however, I can tell you now that if we do not push lower tomorrow then the likelihood of the SENTIMENTS turning Bullish is very high.

We are on that line now and a push into Bullishness might not necessarily be bullish in that a performance the next week if bearish could flip it back to a bearish camp.  This scenario is where we need to call for a more cautious approach.  Therefore, the safe side of the trade is always near any OB or OS situation where you get low risk entry and price acceleration probability.

SEN: Beairsh
ST: UP
PA: NA


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