DOW Daily: RSI is very close to overbrought, MACD is about to rollover. We have divergences forming on MACD and RSI. Price structure is not bearish yet, we might see some up or down movement. Sentiment indicators are showing extreme readings. I am expecting some kind of correction to start within few weeks. Volume is down for couple of weeks now but it is little early to say because of holidays, first few days of 2011 will give us a clue.
VXX Daily: We see divergences forming on RSI and MACD. If the market starts a correction this should rise along with market correction. Volume pattern is not clear yet and it is possible it would make a new low before rising, I would be watching this for further clue to market direction.
I will be watching for market direction before making any commitment. Will post my watch list soon.
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