Tuesday, October 5, 2010
Update
Here are the most current charts, there's definite distribution, SMH shows several bars of no movement at all. It seems there was a push to breakout of a trading range after 11 a.m., which is very typical. Now we have a leading divergence and not too much more upward movement, it looks like a reversal is in the making here.
5 comments:
Reversal? What reversal? I think its time you re-evaluate your system and indicators....I think many of your clients are losing too much money.
no kiddin, another "false breakout!!!!????"
Only a pure bear can look at this tape and see bearishness!!!
Man i don't know what your indicators look at but if this is distribution i sure don't wanna see ACCUMULATION!!!!
To the previous comment, tops/bottoms are made when the last buyer has bought or seller has sold. This type of exhaustion creates a vacuum to the downside or upside. While emotional and painful, it is important to remain objective. I use the Demark Indicators as an overlay to 3C. Using 8v5 qualifier, we will print a 9-13 Sell Setup and Countdown on S&P Futures. Furthermore, we have printed a 9-13 Sell Setup and Countdown on the Weekly Chart. Since 9/15 the S&P is only up 3.15%. These marginal higher highs usually lead to waterfall downside moves that retrace the entire rally in a matter of days. On the SPX Cash - there is potential follow thru till next Monday. If Monday is an up open + higher high, it will be time to re-evaluate the current market outlook.
Here is the problem...the FED has hired it's own brokers (100's of them) to buy the securities it wants. 3C is not going to pick up on these purchases spread out by so many individual purchases. No body left to sell, only buyers with unlimited amount of money.
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