Waiting is sometimes the toughest of all the trading strategies.
Per $NYUPV close at 70.41, $TRIN close at 2.85, and the fact that today was a 90% down day, I would be looking for a bounce of one degree or another for tomorrow. Could just be a pause day before resuming the down trend so I’d be careful getting sucked into to a convincing move to the upside. If for some reason today turns out to be the bottom, which I doubt, then it will take several days for technicals to confirm any upside bias shift. Until then, we just have to look at any move to the upside as being just a counter trend move/short squeeze, blah, blah, blah.
I don’t believe in support or resistance but I will sometimes mention these for lack of a better substitute. My reason is that when the market turns, it turns for a reason and that reason is time specific and unique. Two weeks later when the market approaches that previous turning point, there will be a whole new set of unique circumstances driving the market and so the previous turning point is likely to be ignored as the market moves on.
We are approaching a key voodoo psycho round number support level at 1200 and, based upon what I’ve written above, you can see that I don’t expect this number to hold. But we shall see.
The 5,3,3 Sto on the chart below remains in oversold territory and this should push the market higher for a bit. It seemed to work last Thursday and Friday but the move was not very credible. More important to me on the chart is the fact that the %K line on the 20/20 Sto is about to cross down through the signal line. If nothing else, this indicates market weakness and presents another red flag. Also the ADX ticked up today and so this needs to be watched and logged now to check the move. Should this upward movement go on for a week or a little more, then the ADX could cross up through the falling +DI line which would be bearish going forward.
The pros sold the close today. You can see the huge volume spikes at the end of the day in the intra-day charts starting just after 3:00pm. That is usually not a good thing because if THEY’RE selling then why are you buying?