We have seen a good amount of market conditions that exhibit similar trends as we have seen over the past few days. Once the Key Reversal Indicator moves above these levels, it is often a time for a quick reversal. While the reversal does not mean a crash, it does mean that there is a higher than average potential for a correction off of these levels in order to bring the “markets” back into equilibrium.

Therefore, consider this a confirmation from the signal that the overheating condition is at a point that a cooling off period needs to follow.

(Join us for a webinar on this indicator tomorrow)