I am still in the “prove it to me mode” with the recent price weakness. But one bullish possibility is that an a-b-c correction has completed after five waves up from the July low. At this point there is a setup for possible upside. Until a move up starts, my expectations are for weakness.
The Nasdaq 100 (NDX) shows some distribution on less than average volume in the past two days. But price remains above the 50 day moving average. The a-b-c off the top is clear and the NDX may be set to move from here. As I said yesterday, it has to move soon.
The Smallcap 600 Index (SML) looks in better shape with accumulation in the last couple days.
Charts courtesy of Stockcharts.com
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Tags: A-B-C Correction · Accumulation Day · Distribution Day · Elliott Wave Analysis · Growth Stocks (RUT) · Nasdaq Charts (IXIC)2 Comments
andy, there is just soo much negativity out there, do you think that this could be the proverbial bottom?
volume is anemic, I wonder if we are going to have one of those blowouts one of these days (someone just wanting to get out, and giving us the capitulation we have been looking for so long now…?)…
thanks for your analysis! its always helpful
Kurt – Low volume bases scare me. I’ve lost thousands over the years in conditions like we currently have.