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Monday, August 13, 2012

Daily update 8/13

Another consolidation day, however this one is a little different.  Check out the daily SPX chart.

We ended up with a hanging man today.  The McClellan oscillator went negative as well.  The 10 DMA breadth chart still has a positive cross, but the lines are coming closer together.  We remain short term over bought, but the internals are weakening.  Even though SPX was down less then 2 points, the down volume was nearly double the up volume.

Here is the 60 minute SPY chart.

The bulls are trying hard with a pump into the day's end the last two days.  However, they just can't break it out of this sideways pattern.

Here is the chart of new highs.

We dropped under 100 new highs today.  You can see a significant drop over the last three days.  The buying interest is waning.  I don't think I ever saw the number this low with SPX so close to the highs on a flat day.  Maybe in the spring of 2000, they were really weak then.  They really need to be above 180-200 to be normal at this point.  This is a huge red flag.  It looks like we are going to roll over here before testing the April high.  This is a very weak technical position for the market.  If it does roll over from here it could drop like a rock.  Be careful.

The chart practice site has been update.  http://traderbob58-chart-practice.blogspot.com/


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The information in this blog is provided for educational purposes only and is not to be construed as investment advice.