The ranges were a little wider than yesterday and we had a bit more volume but the result was the same -- the indices closed near unchanged. I guess we'll just sit here until some catalyst comes along to persuade people to take more aggressive action. The market's short-term overbought but as we know it could stay that way for a while and/or work off that condition by just going sideways.
Here's the Nasdaq, which continues to use last Friday's gap as support.
And here's the S&P 500 chart:
Trend Table
| Trend | Nasdaq | S&P 500 | Russell 2000 |
| Primary | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
Odd that the market could be this strong now that we are in summer. If it holds tough through the end of summer, it could set up a nice end to the year (but probably down at least in the first part of 08').
My fear is that this last run up is a head fake, and the summer correction is yet to come.
ADD Trader
ADD Trader,
Agreed. . This could be a setup for the Big Boys slowly accumulating short positions, but who knows. .
Trader Miker, DEPO looks interesting. . NR7 on a daily chart? Seems like you could go long or short and have a tight stop at $4.97 or $5.03.. Am I even in the ballpark or not really??
Hi,
Sorry for my ignorance, but what does NR7 mean?
I think we are in trouble here. I think it will turn out to be a double top. The two reversal days, Fri and Mon, are called "upside gap two crows" in candlestick parlance, which is bearish. Essentially, its a gapping breakout with no follow through. My indicators put me short of the Russell 2000 today. This week should be interesting.
NR7 - narrow range 7
made famous by now out of print book by toby crabel
NR7 is the most narrow ranged bar/candle in the past 7 time intervals. A sign of price contraction. Price action follows contraction, expansion, contraction phases.
Can also watch for NR4, NR3, etc...
NR7
Mike has a Google search box for his site where you can search for this stuff. I hope the link above works, it should point to his article on NR7.
Basically it's when the last candle is the narrowest candle of the past 7 candles (NR = "narrow range") and some traders look to NR7 bars as signs of a possible breakout. I'd suggest reading the whole article, it's much more informative than I am. :d
Wow, the bears are out in force on this post!
:o
Thanks for the assist Babak & Bryan.
Bill, you know all of my readers, or at least the ones who comment, are bears. ;-)
I think we will see a summer correction. Hopefully.
Most, maybe. Not all. I have noticed that bad days bring out the commenters!
:d
I went out with a "neutral" vote this w/e and a post on Saturday suggesting we had some stalling and/or short-term pullback before the bull resumes, and haven't seen anything to change that assessment. I also predicted on Saturday that we'd here some "double-top" calls (see above for one), and that's not an unreasonable trade based on the charts. Also not unreasonable is the idea of buying any breakout, but no one's mentioned that yet ...
Jawbreaker, "hopefully?"
Why "hopefully?"
Are you short now? Or do you want a good buy-in point?
Just curious ...
Well done getting short John.
Good job!
^:)^
Did you cover into the selling? Or hold it?
I'm sharpening my buy list in case it continues ...
@John Leonatti: Care to share about your indicators?
Same question as yesterday for John L.
Did you cover into it, or hold?
Same question.
Did you cover into it, or hold?