Technical-wise, the chart is showing a sideways symmetrical triangle vibe; price continues to be squeezed into the apex of the triangle. The indicators clearly show the falling wedges and positive divergence that caused the bounces, and, the rising wedges and negative divergence that caused the spankdowns along the way. The red circles hint that price needs to move lower to test prior lows from months ago. Last week and this week provides a slight edge to bears as shown by the short red lines at the right margin but it is nothing to hang your hat on as yet. Note how price topped at the intersection of the two overhead trend lines on Monday. The expectation is that the NYA would move lower moving forward continuing to work thru the sideways triangle, but, for the very short term, the Jobs Report will decide the winner and loser this morning. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 8/3/12 at 4:11 PM: NYA closed at 7940 after the huge rally day today. Note that this price is back to the upper rail of the triangle. Watch next week to see if price moves up and out of the triangle, or, receives a spank down to keep price moving thru the inside of the triangle.
you want run stop ES okay mine sell stops come up have mine (Futures is up to run stops my opinion of the day and they will run them at the top of flag line) then thousands upon thousands of contracts will fall as markets cascade.
ReplyDeleteLots of gyrations will continue for sure MCAP. Jagged sideways action for six weeks now frustrating both bulls and bears.
ReplyDeleteno real selling pressure but we are up at levels that are very attractive to short as there is vulnerability to now to bad news that could seriously roil this market
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