Friday, September 10, 2010

Both SPY and DIA

Have broken their uptrend line since 12:00 today on good volume. Heavy hitters like GOOG and AAPL are moving into the red. This isn't the close a bull would want to see. It's not ours either, but all things considered, including the last two major reversals occurring on a Monday and Wednesday, I'm not in a panic. I am frustrated, but that's the point of a top and the manipulation, except for most that frustration comes with heavy losses.

7 comments:

Mr Pink said...

Looks like the 'invisible hand' came in in the last 2 minutes, caught the falling knife and chucked it back up to made sure the damage wasn't too severe. Definitely not the behavior of retail investors, definitely intervention in my opinion.

JC said...

Spinning top confirmation of prior days reversal?

Mr Pink said...

Jack,

Can you elaborate on what that means please?


Also, surely the FTSE is overheating? and due a correction to the downside?

http://stockcharts.com/h-sc/ui?s=$ftse

It's been positive the 9 out of the last 10 trading days. It's way above 200 and 50 DMA also, can you run 3C over the FTSE Brandt? All markets over the world seem to follow the same direction, so maybe it could give us a clue as to when all world markets will reverse down?

JC said...

It looks like we got a spinning top candle and inside the prior days body of the cnadle as well. Sorry, usually it indicates indecision in the market, neither bulls nor bears could gain control.

Brandt said...

It's a Harami reversal -two reversal formations this week, I'd say we're getting close.

JC said...

Let's hope so. Did you see the new circuit breaker rules that went into effect today, including trades that can be broken. I think they just included all stocks in the Russell. Guess they know it is coming as well.

AC said...

the major index chart patterns reveal a developing wedge pattern of like-shape that was seen prior to the deep falls of early august. given the perverse nature of the market, i might suspect the 'manipulators' will manufacture a false break to the topside first...really squeeze shorts...before tumbling south. In the S&P this MIGHT mean a spike up to 1120-1130. So, i guess i am suggesting that we must maintain a conservative approach to leveraging our trading capital...it might get scarier (on very small volumes by the way)