Friday, July 13, 2012

Opening Indications-A Bit too parabolic

I've had a little trouble with the virtual machine on my Mac that runs my charting software causing a delay in my normal overnight recap, but as to the market action, it's in line with expectations for a move higher in the near term, but looks very parabolic this morning, too parabolic and I never trust parabolic moves to last long. This doesn't mean we won't see more upside, I would just think a correction of some sort is probably going to be coming sooner rather than later as this seems like an early fishing expedition to hit stops and other orders.

I would not fade this move short like yesterday's though as we are looking for more upside.

Charts....

 Yesterday's daily closing candle and volume suggested we were at a near term reversal.

 This morning's action, hitting levels where stops would likely be place, seems too parabolic, I don't trust these moves even though I still believe we will see more short term upside, this looks like an intraday correction will come sooner rather than later.

 DIA 1 min in line with a positive divergence at the lows as was expected-accumulation at price
weakness

 The 3 min chart is not confirming this early move yet, I don't think it will until we get a correction from the parabolic move up.

 IWM 1 min is not confirming either

 Nor the 2 min

 However the 5 mins position overall suggests higher prices, so we will probably see some intraday downside or correction/consolidation, but the path of least resistance in the near term is still up.

 QQQ 1 min not confirming early action yet

 3 min is not confirming

 Again the 5 min still suggests after the noise is done, we should still expect more upside over the coming days.

 SPY 1 min trend looks good overall

3 min is not confirming, note accumulation at the lows.

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