bcrafty: Appreciate the xlnt questions. After Sept 1 close, the indicators and daily charts looked quite positive, but daily RSI was very high and the rate of change/momentum indicator was not positive.
Signals are always mixed, so on balance they were positive,and I expected that on the 5th and 6th we would have an increase in volume (which we did) but it was on down days, a bad sign, plus you want to take out the prior high within 1-2 days of getting close, because if it doesn't, then it is probably distribution at the top as opposed to a slight breather to break out to new highs.
Short term moves are harder to predict with great accuracy than are intermediate term moves. Once we broke 4004 and 3982, it seemed likely that we had a double top formation. Actually, once we didn't do it on the 2nd day after reaching 4264 intraday, it was a harbinger of things to come.
Bearish/bullish divergences are what I mainly look for all the time... |
