I wrote the other week that Dow30 (/YM) weekly chart was getting over extended and now, a couple of weeks later, it is even more overshot.
When looking at IWM (Russell 2000), volume flow has not exactly been bullish the last couple of weeks.
Over extended weekly /YM and now IWM negative volume flow on daily chart, I can not see a big up move on the market at the moment. To put it clearly, I expect next either a pullback or consolidation.
With that said, this bullish move has been beyond my expectations for beginning of 2013. Mr. Market doesn’t seem to stop surprise. I guess that is why it is not good to start fighting the direction..
IWM daily chart with negative volume flow