Hawk’s Scan Sentry Report March 26
Well, clearly the American stock indexes are drawing back and everyone wants to know if this is the end of the rally, or is this a buying opportunity? I look at hundreds of charts every weekend and I must say that I am seeing a lot of bearish pivot divergences in the recent highs. Of course, we all know that strongly trending markets are known for giving several false divergence signals before they finally run out of steam. That is what I think we are witnessing here. In the long run (6 months – 1 yr) I am still bullish; I believe that this rally still has more fuel in the form of sidelined money that will eventually push some stocks higher. For the short term, however, I’m tightening my stops and I am being a bit more cautious about the set-ups I’m willing to trade. I am,nonetheless, still looking for good pullback opportunities as well as valid breakouts from congestion.
Here are a few items from this week’s watch list and a little explanation of the technical analysis indicated on the charts. If you want further explanation of any of the indicators on the charts below you can find a ‘legend’ at this link.
(Note the diminishing bullishness in the Radar1 Fear/Greed indicator creating a bearish pivot divergence. I would not short this stock, however, until all three Trenders are bearish and Radar3 Trend Strength crosses below zero. )
May the trend be with you,
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