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Tuesday, January 18, 2011

Tuesday, After the Bell!!!

This is into record territory, put/call ratio, and should be VERY alarming to the Bulls!!!
BKX is sitting on important support with some major divergences happening, this really ups the importance of the action after Goldman reports in the morning, as any selling could start a larger sell-off in the Financials.
The TRIN is also out of its normal readings, with the 20 and 50 day trending down to way over-bought conditions, something need to give here, the last time the 50 MA is down this low, we were topping back in '07.
Another sign momentum to the upside is failing, the number of new highs, minus the number of new lows is dropping, under normal circumstances when there is a drop in this index, the NYSE is already in a sell-off, this is very unusual to see this behavior. This is a sign the equities are not firing on all cylinders.
The percent of stocks above their 50 day moving average has stall right on the over-laid 20 day MA , if the SPX were to sell-off from here, we could add this chart to the growing list of divergences. A solid break below the 20 day MA normally signifies a top was put in.
This madness needs to end, other-wise it will be time to re-evaluate this count, the SPX has a nice set-up on the divergences, and is over-bought on the STO, but it has been impossible to get a decent 5 wave impulse down going.
Breadth ended at 1.18:1, advancers, on some real volume today, 1.2B shares on the NYSE. Breadth is still very weak, another sign upside momentum is getting really tired.
Apple blew away earnings after the bell, but the stock never followed suit, only up a couple of bucks, and falling as I write this. CREE is down big after hours, 15%, after missing earnings!!!
Before the open, Goldman Sachs reports, this is also I biggie, and a miss is not likely, but it could turn into a sell the news event, BTW, BKX never did recover today, closing down 1.15% on Citi's disappointments.
One piece of good news for the Bears, the VIX did close back with-in the Bollinger bands, suggesting a new bullish trend for the VIX.

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1 comment:

  1. The Day of Truth Jan 19th( give or Take a Few Days ) Has Arrived,
    Lets see if the Full Moon will help bring some sort of a Top Here;