The relative strength index of the McClellan summation index is into the powerzone again. This is not a surprise given the seeming unstoppable market up trend force we have been witnessing.
Looking at the McClellan summation index chart history one can see that when the RSI of the summation index moves into the RSI power zone above 70 percentile range it typically leads to upward moving stock index prices and sometimes very strong or even parabolic upwards price movement.
Shorting the market when the RSI of the summation index is above and into the 70 percentile zone is a bad idea. This move into the power zone is a clear sign that one just needs to let the market do its business and not get strong ideas about shorting it.
Having said that, I think a shorting opportunity will develop AFTER we see the RSI of the summation index finish its form and then initiate a downside crossover back down and through the 70 percentile line. This would present a better possible opportunity for shorting this market.
An even better approach is to watch for the 70 percentile line crossover to the down side and then look for clear candlestick confirmation of a sell signal either on the daily or monthly price charts.
Based on the current look of the summation index chart, it appears that such a sell signal is maybe 1/2 of a month to 1 full month away.