To reverse coarse on Wall Street, momentum and energy must be dissipated and acceleration must occur in the opposite direction. Think of overbought or oversold stochastic signals on charts used by IndexSkybox as an indication of when the market is ripe to begin changing direction. Or if it'll likely continue in the same direction. Along with not fighting the FED, please don't fight the direction, momentum and energy of a bull or bear market either. There you have it, folks.
Class is over.
Only buy when daily and weekly stochastic signals are oversold and then set an initial stop loss.