The McClellan oscillator has carved out a series of lower highs and lower lows since mid-October and looks ready to swoon.
Last week a bear trap and now a bull trap. Get ready for some profit taking. We have negative divergence in the RSI and the ADX line has failed to confirm recent bullish momentum. We could be in for a sharp pullback in techland. Also, when a bellwether like CSCO reports great earnings, guides higher, and closes on its lows, it sends a bearish signal.
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