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Jim Wyckoff

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US stock indexes: too many bulls on one side of the boat?

January 17, 2020 by Jim Wyckoff

The U.S. stock index bulls are on a roll, as new record highs continue to be set. Prices are trending higher and there are no “strong” technical clues that market tops are close at hand. However, there are some “secondary” technical indicators that are flashing warning signals. See on the daily bar chart for the March e-mini S&P futures that prices are in a strong uptrend. However, at the bottom of the chart the Slow Stochastics indicator has moved to its highest level in the life of the contract, at the 96.00 area. Any reading above 80.00 is indicative that a market is overdone on the upside. Here are some better clues that the U.S. stock indexes would be topping out: a bearish weekly low close on a Friday; two big down days in a row; and a big increase in daily price volatility at higher levels. Keep reading my reports and you will get those early clues on price trend changes in all markets! Stay tuned!–Jim

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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There is a risk of financial loss in futures and options trading. Futures trading is neither easy nor an easy way to make money. It takes hard work to have success. Please use sound money management when trading futures. Past performance is not necessarily indicative of future results. Nothing on this website is intended to be a trading recommendation to buy or sell futures or options. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed. Readers are solely responsible for how they use the information on this website.

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