Market Update for Tuesday, May 31, 2011

Today E-mini reached overbought levels on both 1-hour and 4-hour time frames. After reaching overbought levels, it sold off and then it came back to higher prices, however, not reaching overbought levels this time. Some call this a divergence; however, MACD is positive on both time frames and it never turned negative on the 4-hour chart.

At the moment I continue in cash since I still don't see a good low risk/high reward opportunity in the markets.
I recommend you do the same and no matter how long it takes for this opportunity to appear, just sit tight and wait.