Monday, August 24, 2009

Stock Market Update - August 24, 2009

The hourly chart is showing the intermediate price has reached the top of a cycle. Just a note it can stay overbought for a period ... look at the bottom two indicators ... they are close to the bottom of their cycle. Once they turn up this will show some support for the market. Confusing I know but keep a watch on them for direction of the market.

Money flow is now basically flat on the actual indicator ... however the modified indicator is still pointed up (blue line). Today we had a 55% up day on volume and money flow was down a bit. It looks that the short term indicators are beginning to move up (bottom two indicators). I'm going to say this ... I think its going to be hard to say exactly where we are headed in terms of price next ... I do think we still have some room to move up but we will just have to wait and see.

The dollar was up today and this is what gave us the weakness in equities.

Just one item to keep an eye on ... High Yielding Debt (Junk Bonds) has or is making what seems to be a divergence in price. If this breaks down I think this could be an early indicator of what is in store for the market.

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