$NYMO Overbought and the $SPX trendline

When the $NYMO is above 100 it is considered overbought. Take a look at the chart below at other times when $NYMO was above 100. A another move up today should bring the $NYMO above 100. Whoopee do right. Well a move up today would also bring the market to 848-850 level and right at the November downtrend line. Well take a look at the chart below of the $SPX.

The yellow circles match when $NYMO was above 100. Each time the $NYMO was above 100 and the $SPX was at the trendline the market has started it's next leg down.



Just something to think about if you are thinking about going long or short. Of course a breakout of that trendline today is very bullish, so be careful out there.


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