I guess a bounce has to start somewhere and somehow but the way this one is starting isn't very convincing to me. Despite the apparently good fundamental reasons for the rally (good ISM numbers) the volume was much lighter than last week's down days. That makes me think that this was simply an oversold bounce (probably short covering) and there wasn't that much real buying taking place. We'll see if any solid upside momentum develops but for now I'm expecting resistance to kick in after the market works off its oversold condition.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
We are going to have to send you to volume-anonymous! :)
I was actually surprised to see volume so weak because I was looking at so many commodity stocks and the like that popped 5% and more.
I also agree that declining 50DMA is one more ominous sign. Thanks for pointing that out.
First I have to admit that I have a problem. "Hi, I'm Mike & I'm a volume-holic" LOL
I'm sorry if this is very off-topic and a stupid question but how do you draw a downtrend line?
"For an uptrend within the period of consideration, draw a line from the lowest low, up and to the highest minor low point preceding the highest high so that the line does not pass though prices between the two low points"
Is it everything reversed for a downtrend line?
Henri.
Yes Henri, everything is reversed from what you would do for an upward sloping trendline.
Not volume anonymous!!! That will turn into another brain numb analysis.
If you check out the last pullback, it too was on decent volume and the recovery was on declining volume; which is pretty much the way this recovery has gone since last March. Also, look at your stochastic chart. Price dips are accompanied by a decline in the STO. Maybe this time too?
Am a regular reader here, and I happened to see the same charts on Seeking alpha too .. but may be a different guy posting it ..
http://seekingalpha.com/article/186019-testing-tuesday-back-to-bounce-levels?source=hp_wc
just an alert ..
Mike, you can disable right mouse click for your charts, so others can't copy and paste it elsewhere.
Phil uses my charts from time to time, although he usually links to me and mentions that they were my work.
Disabling right-click won't stop people from simply looking at the page source and grabbing the link or just doing screen grabs.
There are also several sites around the web that simply steal my (and other bloggers') entire posts (thanks to me providing full RSS feeds). And people wonder why blogging is a thankless job/task. :-)