Tomorrow is day four of the move off the lows last week. I’d call it a “rally”, but that seems silly. Still, the market remains in position to move higher as price is above the low of the high volume up day last week. Tomorrow would be a good day for another big up bar on volume. I don’t have any idea if we get it. But a second thrust up on day four would be encouraging.
The McClellan summation indices have turned up but could roll over without another strong upside day.
Charts courtesy of Stockcharts.com
Tags: Market Internals · McClellan Index · New York Stock Exchange (NYSE) · Volume4 Comments
4 responses so far ↓
None of the market internals have made newer lows unless I missed something.
Here’s why I give more weight to market internals over Elliot Wave theory. The former tells you whats happening, the latter is trying to predict what will happen.
As I see it markets internals are telling me to buy very very soon or not be inshort position. I already did some and will more tomorrow through Friday. I am only buying stocks that refused to make new lows. If they do I sell. Just glad I do not own BIDU
Another important and very early market bottom indicator is the refusal to stay at a new low or even go back to a previous low. If that does not happen tomorrow then we are going to newer lows in days to follow.
This just remains my opinion and it probably is worth what you paid me for it.
Ray - I agree the internals are more positive than negative. I see the big boyz like Buffett buying. So I assume we are near the bottom in price. Time was up in October, but nothing says price must rise from here. Looking at the patterns, I would not be surprised to see one more break down before up. But then again, the down break may be significant…
Isn’t everyone tired of hearing CNBC ask if we have bottomed yet??? The sad part is we are so over sold in everything including Pork Bellies, that the Yo YO/Roller coaster trading (hope everyone liked the song) is beating even the bears like me down. The problem is we are bouncing off the bottom, like a cat fish hunting for food, and we just wish….and that is not good. That means we are in my opinion still going lower, no matter what the technicals say and when Bernanke and Paulson both speak on the same day, well that could spell disaster, I was calculating that we only have 41 days of market left is we keep falling at 200 pts a day. Now what if we did 400, yes 20days left….WOW! Even I am getting worried more….What type of life will we have with out Wall STreet. My thoughts trail off to when I was a kid, who cared about Wall STreet then? I sure didn’t, I just wanted to explore, find new crawdads and lizards, make snow angels, and help my dad on the farm. Wall STreet is just another business, will our Gov’t bail them out too? We need to be patient now, sit and watch we may be bottoming, but it could take months. I can throw all kinds of #’s at everyone, and I am sure you can toss em back. Truth is right now, we could toss a coin thats how unpredictable it is right now.
Libby - Don’t get much CNBC due to work. I miss out on so much. Why won’t my Powerball ticket ever hit? Speaking of cat fish… went to bed last night with a cat in front of the fire and a fish in a bowl… woke up with only a cat… who stole the fish???