ES MFI Overbought

Dec 7, 2020

NQ touching overbought on MFI and RSI, RTY and ES are very overbought on MFI.

Might still get the usual Tuesday gap up, if we do I might enter some short positions.

Dec 7, 2020

Note

I don't think the market is going to tank, but it is overbought, so expect these little drops as the algos sell off futures....

Dec 7, 2020

Note

MFI is still overbought, but futures travel in the same direction as ASian markets, then Euro markets. EOD direction is not indicative of the gap for tomorrow.

Even if it gaps up though, I think it reverses tomorrow. Looks to me like the algos want to get rid of the overbought condition, even if this is a melt up.

Couple of small short positions for now.

Dec 7, 2020

Note

Forgot to mention...

Neither indicators or chart formations show direction for Asia or Europe tongiht. Could go eitehr way.

Dec 7, 2020

Note

I said it last week.... even if you're bullish, wait until RSI and/or MFI go oversold before going long....

Chasing a melt up is dangerous.