Today a pull back is occurring down to -86 thus far. The blue rectangles show a fractal in play currently so watch to see if the current action mimics the late July two-day Draghi rally (type TRIN into the search box above to reference the Arms Index for further study on the late July action). The July action was a two-day 60 point bounce for the SPX which then gave back about 30 handles over the following four days so watch to see if this fractal behavior repeats for the current move. The intraday NYAD numbers are important since extreme readings at +2000 and higher signal that market selling is needed to remedy the uber bullishness, and conversely, if -2000 and lower prints, a quickie market rally is needed to remedy the excessive bearishness. At +2500 and higher, the chart is signaling uber bullishness and a market top in place. 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.
Thanks, KS, as always, for the terrific commentary.
ReplyDeleteOne small point: "fractal" doesn't exactly mean a repeating pattern, but a repeating pattern at different scales: for example, if a 1 minute chart displays the same pattern as a daily chart or if the tip of a branch looks similar to the entire branch.
Yep Al, over multiple time frames, and even comparing individual stocks to indexes, and many other comparisons. Fractal is simply an easy catch-all word to describe all these comparisons.
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