As we have seen most of the day, the 1 min divergences keep failing, but there seems to be a building 5 min positive divergence. Anything after the 5 min timeframe is pretty much in line with price action to the downside. There is a slight bid on the Euro now, so that may alleviate some of the selling pressure leading to a bounce.
8 comments:
Is it possible that the 5 min could turn also now that the 1 min seems to also be heading down. Plenty of time left in the day to swing this back to negative if the market continues down. We have CPI and Housing Starts out tomorrow.
Jack, normally I would say yes, but it seems like the 5 min has been building in most cases, not diminishing, so it may be a cumulative effect of real accumulation being seen on the 1 min charts, just because they are accumulating doesn't always mean a reversal is sure to follow. the Euro has kept pressure on US equities all day so it's hard to judge. There may also be some inside knowledge as to the reports due out tomorrow or some other unforeseen event.
In any case, a bounce here is not out of the question of normality within a sell-off like we've seen today. Usually a little relief bounce is good for the downtrend so it doesn't get into a major oversold condition real quick. The longer term charts as of last check were still confirming the downtrend so they weren't gaining at all as far as accumulation goes, which suggests if we do get a bounce it's not a game changer at this point.
Probably has more to do with the EU press conference later today.
Have to take back that last statement Jack, the 5 mins are falling apart too. This is looking pretty bad.
The hourly chart is what is really scary, it's just nose-diving
I was just about to ask for an update going into the close. We have a pretty fluid situation going on in Europe. Finland and Austria refusing to give any more money, Ireland playing hardball any refusing to roll over like Greece. I'm sure many things are going to change as we move day to day.
The hourly chart normally doesn't move that quickly, does it?
no it doesn't, i've seen dozens of stocks, etfs, averages in which the hourly i in a nosedive. I haven't seen that too many times.
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