No matter what the human activity is, humans tie of it, and will seek a break before resuming. Traders are getting tired of buying, resulting in a stretched market that will attract selling.
Sure, selling can be soaked up with time (sideways) or of course it can be punished with time and price (down swing).
The Morgan Stanley Cyclical Index is one to watch, it is made up of industrial, consumer discretionary and materials type stocks (with only 1 bank). It is a index with a large factor of truth for the trend watchers. The chart below shows Gann boxes of 400 points each, and at the moment we are approaching the end of the 3rd box that should attract profit taking (no one is saying crash, as no one can).
Stay frosty, better prices for buyers are coming.
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Investing Quote...
..."I was brutal in self-analysis. He told his sons his conclusions: “Successful trading is always an emotional battle for the speculator, not an intelligent battle.”…He knew that his biggest enemy was his own emotions."...
Jesse Livermore
.."Money can't buy you happiness but it does bring you a more pleasant form of misery"..
Spike Milligan
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