Interesting Inflection Point Here?

The sentiment trader is watching one of our favorite market breadth indicators - The SPXA50R where it has been in a very strong buy stance, that seems to be shifting a bit at the moment. The market right now seems to be now coming into some head wind resistance.

As you can see on the chart above the market is heading into overbought conditions. There could be some upside momentum left, however from viewing this chart there is a low possibility of that actually playing out.

Since the JUNE lows on the S&P 500 ( 1260 'ish ) we have seen an extensive rally. Now we are in SEPTEMBER and both September and October are notoriously known amongst traders as a time the market can see trouble brewing. We remain on the backfoot and watch as the sand could be shifting here, but there is no need to panic just yet. :-) In August the market was very sloppy, however I doubt sloppy will be the best way to describe the market now in SEPTEMBER / OCTOBER!!!!

Due to the US long weekend, I am taking a bit of break from trading today, but I will post up some other charts of interest later in the week.

Good luck and happy trading.

CHIP :-)

WHAT IF YOU KNEW WHICH WAY THE MARKET WAS ABOUT TO MOVE BEFORE IT HAPPENED?  CLICK HERE To Join Our VIP ELITE GROUP  -- 30 Day Trial Offer Today!