Just a quick note on what I'm watching into the close. Only the Dow made a new high today which caused a nice intermarket divergence between the Nasdaqs and the S&P since they did not make new highs. Of course this is a big bearish sign, and makes the overall market look toppish. Also of significance is the big reversal after the open that might have the Dow close below yesterday's low at 10,463. If the Dow rallies to a new high today, then reverses to CLOSE beneath yesterday's 10,463 low, it would be a very very very strong signal that a significant top is in at least for quite a few days. If it looks like the Dow will close strongly below 10,463 I will be getting short.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.
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4 comments:
Wondering if NDX is going for a triple ZZ (1st ZZ was retraced 50%, then 2nd ZZ was retraced 50%, and now 3rd ZZ..). Hope not, but possible.
Or a large ABCDE bearish wedge
the NDX charts look much weaker and bearish than the blue chips. i think it counts best as an ABC from the July 1 low but the last leg you're showing there does look like a wedge since it really ran out of steam there. especially compared to the blue chips that were sharper moves to the upside.
Thanks! Yes the second leg looks like a wedge. The wedge lines on first one were just a draft sketch. Will be watching what trick "The Market, Inc." pulls out its hat next.
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