If we take a look at the the sentiment trader market breadth indicators, we can see that the news is already coming out in the charts.
While bears keep saying the market is about to crash, NO, this was just a dip on the market. Nothing more than a holiday reversal if you have been reading our updates.
We have been telling our members to NOT FALL IN LOVE WITH THE DOWNSIDE. The reason is because summation and breadth still have nice room to move on the upside. Lots of room.
Nothing has changed on summation, and it clearly is still in BUY MODE or BUY DIPS mode. That is the smartest thing to do right now. Although the summation is not as strong as it was back in NOVEMBER it still remains on a BUY stance, and we should see higher prices soon on the S&P.
The market breadth is now sitting on 67 and has now given us nice room to move to the upside, and we suspect the market is really ready to rally ONE LAST TIME up into early 2013 and not only surprise the bears but trick them as well.
We will not be overbought until we reach the 85 - 90 level. So we suspect a nice rally is going to come in the next few weeks sometime and there is also a nice rally in gold and miners setting up also.
We have been giving many warning shots that traders should still be buying dips, and not going short on the fiscal cliff news, or listening to analysts who keep saying the market is going to crash this week. We are not saying that wont happen, but the charts are telling us that is a low probability.
Right now the market breadth and leading indicators are saying the opposite and so as astute traders we must listen to the charts, and buy dips, and forget the fluff and so called analysts that do not use charts.
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