This Elliott Wave blog is dedicated to sharing Fibonacci ratios and other technical analysis for forex signals, index futures signals, options signals, and stock signals. Elliott Wave Principle puts forth that people move in predictive patterns, called waves. Identify the wave counts, and you can predict the market.
Friday, December 19, 2008
Despite Modest Sell Off, NDX and Breadth Still Strong; Dec. 19, 2008
Despite the sell off after the opening rally, breadth is still positive on the NYSE and Nasdaqs are well outperforming the S&P and Dow. These are not the characteristics of the downtrend resuming. This doesn't mean I'm a staunch bull, but I don't any signs or reasons to get aggressively short. I'm still long the S&P and short various ETFs (XLE, XLU and XLK), plus short gold.
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3 comments:
Hang in there Todd, I am waiting for one more rally before I sell, if the breath doesn't go up with the rally, then I am definitely selling. :)
So there won't be any Santa for Christmas?
Looking at the short term 15min S&P chart you can see an uptrend with higher lows formed. The last swing low is 885. A break of that level would warn of a break in the rally phase, but a break of the 850 swing high would confirm it. Breaking those leves on big volume and weak breadth would be a shorting opportunity. Otherwise, I'm remaining cautious and placing small trades for quick profits and type stops.
Good luck!
CORRECTION, I said 885 as the last signficant swing low, I meant 877. So it's 877, not 885!
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