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Monday, January 3, 2011

Monday, After the Close!!!

My thoughts last week of a 4th wave playing out came to fruition today as the SPX made a new high on the day, with a nice impulsive wave up from the open. Internals also are supporting this as a 5th wave with Breadth numbers that were well off of their highs from earlier in the rally, closing at only 2.82:1, advancers on average volume of 1.06B shares traded on the NYSE. One other number that did not make extremes that we were seeing before was buy volume only accounted for 83% of total volume, we were seeing this number exceeding 90% earlier in the rally.
The sell-off later in the day was stopped dead in its tracks by the median channel line(black) and is very-short term support now. As far as the count, this can be counted as completed, but that is useless information because this would not be the first time this as happened, so until the SPX can break support and start producing lower lows, the trend remains bullish, but in extreme over-bought conditions. The RSI and STO have rolled over to a sell on the above chart joining the daily and weekly that are already in a sell.
The Dollar and precious metals had an inside day and were relatively flat on the day.
The Trend Finder II did signal a buy on the SPX this morning that held into the close, the new signal is VERY weak, a blip on the radar, and for a decent signal the SPX needs to follow-thru to the upside tomorrow. The Russell and Nasdaq remain bearish.

(Video) Prechter on CNBC: "Not a bear among them"

1 comment:

  1. I tend to agree with you. Thanks for all the hard work and posts, and a happy new year to you!