Exactly a week ago, we were wondering whether it’s time to short stocks (see Time to short stocks in the NYSE?). We wrote,
Currently, this Point-and-Figure indicator is not officially in trend reversal status yet. But it will be soon if more stocks comes under ?Sell? signal.
Today, the Point-and-Figure indicator goes like this:
- NYSE Bullish Percent indicator
As you can see, the indicator has gone up by more than 1%. That is, the trend reversal has not yet happened according to the indicator. Stocks are currently very overbought and therefore, very vulnerable to a correction. But that does not necessarily mean that one is imminent.
According to the Point-and-Figure indicator, now is not the time to buy stocks. More conservative traders may not want to short stocks (yet) either.
