The rally off of the September lows surprised many market observers, myself included. As we get closer and closer to the all-time highs, is my bearish posture still warranted or not? Let us examine the bulk of evidence.
Trend indicators are still firmly in the bearish camp. If you look at the 50-day moving average, you will notice that it is still below the 200-day moving average. The same goes for 50-day and the 200-day exponential moving averages. These facts alone are enough to set a bearish bias. But as I will show, there are quite a bit of false signals with this system.
Read rest of this post here