With the RSI on the monthly chart now at 76 and likely to go a bit higher before the end of the month, one has to be on the look out for a pull back at any time. The upper channel line has repelled the $SPX several times in the past and may do that again.
The RSI on the monthly charts has only reached levels in the upper 70's twice before in recent stock market history and those times were 1999/2000 and in 2007. While I'm looking for a healthy pull back from the 1830 area, there's always a chance that a pull back from that area could turn into something more sinister. But who can really say? The $SPX may just blow right through the upper channel line and keep on going. We won't know that until sometime in January 2014.
GL in the week ahead.
The RSI on the monthly charts has only reached levels in the upper 70's twice before in recent stock market history and those times were 1999/2000 and in 2007. While I'm looking for a healthy pull back from the 1830 area, there's always a chance that a pull back from that area could turn into something more sinister. But who can really say? The $SPX may just blow right through the upper channel line and keep on going. We won't know that until sometime in January 2014.
GL in the week ahead.