Gaps serve a warning for US equity bulls
- High openings are an omen of frothiness
- RSI is emitting a "no problem" signal
- Nasdaq gaps quickly followed by dips
Below is a "special" page of my analysis to clients today talking about the S&P 500 futures and the way we are currently seeing a number of incidents of opens above the previous day's ("day session") high. This sort of thing can spell trouble for the rampant bulls and can act as a warning that things might just be getting a tad "frothy".
The NASDAQ 100 (Futures Chart) is also interesting from a "gaps" point of view. Have a look and tell me if i'm wrong?! Look what happened after each of the highlighted gaps; all at high levels; around where we are now!
– Edited by Clare MacCarthy