Wednesday, July 22, 2009

Stock Market Update - July 22, 2009

The daily chart of the Dow is topping out in price. The tick data is almost at nose bleed levels. I do want to point out that the market can still move up in price with the tick data moving down. History shows in the past ... the market does have a tendency to correct in price when there is a move down with the tick data. The bottom indicators are moving to more of a neutral stance while the green indicator with the price chart is still overbought and the indicator looks to be rolling over. We may see some choppy days ahead in price.

All indicators are overbought on the daily chart ... again this is for the short-term. The green line is still pointing to a move up in price while the blue line is the indicator of money flow and it moving back down in the cycle which in the past has led to some weakness in price. This could be a buying opportunity. Today we did have a 57% up volume day with an overall inflow of cash into the market. Based on what we are seeing with corporate earnings ... I hope we can rule out an outright depression ... all we need now is for our government to cooperate and provide business with the room to operate.

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