I am looking at this chart of the SPY and I am thinking the rally will fail. When? I cannot say. The uncertainty principle of the market says you can either know when something will happen or what will happen, not both (note- it is probably neither in most cases, but I like to think I know a little something about trading and investments). I see the volume fading as the price of the SPY trades into the early November downdraft. This is a negative signal and indicates a potential change in trend, as it suggests demand for stocks is waning. In addition, this is occurring as stocks are in overbought territory on the stochastics and the trend in the stochastics and RSI fail to confirm higher prices. It is my opinion that we will most definitely see the lows of November at some point.
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