Short term signals have worked well recently... we got oversold and a bounce yesterday.

The major indexes have been in a very tight narrow trading range this year. Rarely getting close to medium term overbought or oversold but the short term signals have been very reliable as the major indexes reacted to them very well. Yesterday, the stock market did reach short term oversold during mid day and rallied back up. Going forward the stock market have been in a long consolidation with internal weakness underneath. Eventually this should result in the major indexes breaking down hard or breaking up strongly. I believe we will eventually break higher. Whether this short term rally will be the start we'll see.