FIBONACCI 61.8% COUNTER RALLY NOW OVERBOUGHT - LIKELY "B" WAVE DOWN BEFORE YE "C" UP
On a monthly basis, the backdrop has also worsened. RSI has dropped into correction territory along with a confirmed monthly sell signal. Extensions of the market that move 3-standard deviations above the long-term mean are unsustainable.
The chart below is a broad technical look at longer-term indicators. Notice that these indicators have only previously unanimously aligned when the market was reversing its trend. That global alignment is occurring once again.
Participation in the markets remains extremely weak. This is just another indication of the change in the “tenor” of the market to a more bullish backdrop.
The counter rally is now Overbought after achieving a 61.8% Fibonacci retracement.