Interesting setup we have for the market. Based on most all the technical indicators we have a prime chance of some kind of reversal. I have even pointed in the above chart with the blue arrows on the tops that have been made in price and the corresponding dips with blue arrows on the volume chart (middle one below the price) ... each time the black line on the volume chart cycles down to a new bottom like we had a couple of days ago ... the market makes a top ... not necessarily THE TOP but a top. If you match it up with the some of the other indicators (like the Frye Indicator in green) you can look to see when we might have a more intermediate top taking place. We did have some buying on weakness today of SPY the ETF for the S&P 500 and the money flow, according to
The Wall Street Journal, was actually positive for the total DJ US Market. So we may see a bounce up from here late on Friday based on the Dow 60 minute chart below. Also this is interesting to point out ... we had a volume distribution day ... the volume traded today was heavier on a price down day vs. yesterday's volume on a price up day. Today's volume marked the 4th heaviest selling day we have had on record with the Dow since this bear market started in the summer 2008. Don't know if I would read to much into just one day ... but we have to keep an eye out out for this. The modified money flow line (blue line on the price chart) is even approaching overbought ... remember this tends to be a little lagging from a indicator point of view of timing.
This is a look at the 60 minute Dow chart. Everything is approaching oversold on a short term basis. This could be a top based on the Frye Indicator in green above ... but we will need to wait and see if price confirms.
I wanted to leave you with the NYSE Bullish Percentage Index. Note the last time it was in this territory was the spring/summer of 2007. It can move higher and even move down a bit and price continue up ... but based on the last two years ... I would make sure I had some stops in place to protect myself if I have any long positions.
Interesting setup we have for the market. Based on most all the technical indicators we have a prime chance of some kind of reversal. I have even pointed in the above chart with the blue arrows on the tops that have been made in price and the corresponding dips with blue arrows on the volume chart (middle one below the price) ... each time the black line on the volume chart cycles down to a new bottom like we had a couple of days ago ... the market makes a top ... not necessarily THE TOP but a top. If you match it up with the some of the other indicators (like the Frye Indicator in green) you can look to see when we might have a more intermediate top taking place. We did have some buying on weakness today of SPY the ETF for the S&P 500 and the money flow, according to The Wall Street Journal, was actually positive for the total DJ US Market. So we may see a bounce up from here late on Friday based on the Dow 60 minute chart below. Also this is interesting to point out ... we had a volume distribution day ... the volume traded today was heavier on a price down day vs. yesterday's volume on a price up day. Today's volume marked the 4th heaviest selling day we have had on record with the Dow since this bear market started in the summer 2008. Don't know if I would read to much into just one day ... but we have to keep an eye out out for this. The modified money flow line (blue line on the price chart) is even approaching overbought ... remember this tends to be a little lagging from a indicator point of view of timing.
This is a look at the 60 minute Dow chart. Everything is approaching oversold on a short term basis. This could be a top based on the Frye Indicator in green above ... but we will need to wait and see if price confirms.
I wanted to leave you with the NYSE Bullish Percentage Index. Note the last time it was in this territory was the spring/summer of 2007. It can move higher and even move down a bit and price continue up ... but based on the last two years ... I would make sure I had some stops in place to protect myself if I have any long positions.
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