Never short a dull market is the phrase but sometimes markets stalling with RSIs extended means a drop is next. I scanned all the things I track looking for setups. Using the basic criteria of below at least 1 long term level, ie below YP or 2HP, what is a candidate for further consideration?
Only two:
Oil, although I like the CL1 continuous contract chart and it is currently sitting right on its 2HP support at 42.01.
Shanghai Comp via TradingView symbol XGY0 "Shanghai Class A Index." For some reason the number is slightly different than the Comp as reported on CNBC but chart structure and % moves are often identical, so good enough. That is been in a tight range most of the year and currenctly approaching its 2HP from below. What is more likely? That stocks top out here and SHComp has a decent drop down? Or it catches up to rejoin every other international index I know of that is above both long term pivot levels?
That would leave speculative candidates - we'd want to see RSI extremes with divergence, a downsloping moving average on a longer timeframe maybe or more likely a weekly Bollinger band, and/or small blue bars, and of course, pivot resistance. Not many look good here, but RSX and PIN/India stand out as considerations. But both appear to be opening above pivot resistance levels which immediately nixes the idea.
But GLD is back above all pivots after a quick drop, and TLT may do the same today. Just so much easier buy what is going up.