Visit your Relatives Wednesday, page-2

Tuesday Evening Liqueurs. 17 May, 2016.

XJO up +0.69% on heavy volume. This was a new closing high but not a new intra-day high. After the initial gap up, we had a narrow range day, with very choppy trading.

Following is the chart for STW, ETF for the XJO:



The Index remains overbought on the True Strength Index. That suggests the odds favour the downside, but until the trend breaks to the downside, the trend is up and can continue so much to our amazement.
The chart appears to be sketching our a rising wedge shape which is essentially bearish.

Given the above parameters, I wouldn't be putting money into this market at this time but wait for a pull-back. Just how severe such a pull-back might be is a moot point.

Overall, I maintain the bearish sentiment I elucidated in the Weekend Report.

RB.