Note from Tim: I just want it made clear that Slope’s beloved Strawberry Blonde composed the piece below, which I appreciate. To be clear, your permabearish friend (me) remains short, having bumped his positions from 50 to 75 this morning. Having said that……….
New “BUY” signals have just formed on the RSI, MACD and PMO indicators for:
- SPX:VIX ratio: Price still needs to cross and remain above the 100 level, as outlined in my post of January 29th, and, thus, is still aimless and directionless within the “Uncommitted Zone.”
- MSWORLD Index: The RSI is about to cross above the 50 “BUY” level, possibly by tomorrow (Thursday). Major resistance lies above at 1600, as also mentioned in the above post.
So, while we are now seeing fresh “BUY” signals on these charts, we’ll need to see a convincing follow-through and a break and hold above these resistance levels to confirm that a new bull market is emerging in equities, especially in view of the economic weakness that was reported in the last Beige Book Report.
