2 things on our markets..We are not overbought..RSI is still below 70 on the daily(63) so lots of scope for upside even though we are new record levels. Charts don't see records..thats a human emotion. Secondly, foreign inflows have gone positive for the first time last month having seen 3 months of negative outflows. Thats a tap that opens and closes slowly. So having just been opened it will take some time to close again(Think trying to close a bathroom tap that has been opened all the way. It takes a while to cut the water supply)
So tomorrow we should see negative divergence on the CCI daily if thats what you are following for the first time.(There was negative divergence on the 4hr and we sold off to 43680 so that box is ticked) Incidently 43650 was resistance on the 2,3 9,10 April and now support level(ROCKSTAR if you followed your tutorial you would see its principles in action today)
That's the point, charts only tell some of the story....at some stage someone eventually asks, how much is this index or share actually worth? How many years of future earnings am I paying for? What's my house worth? Did you buy a house based on charts? Of course not, you wanted to know what houses went for in the area, what the rentals and perhaps levies were....and all the other stuff...fundamental stuff.
ALSI40 is just another asset, a highly $/Euro influenced asset, essentially focusing on risky commodities like Chinese based gambling websites, Chinese reliant luxury goods providers, Chinese iron ore buyers, Chinese platinum buyers, Chinese growth in cigarette consumption....
Its a theme. Use it, lose it.
Our ALSI40 market, on a 14 year median PE is extremely expensive, possibly the most expensive in the world right now. Its NOT just about trader charts, it includes fundamental charts.