<<I hate to think how may points lower that would be>>
excellent observation
in fact, the weekly on COMPX, NDX, SPX, and OEX all show
ADX still rising along with -DI, but the ADX has now risen
above -DI which may signal a trend reversal in near future
stockcharts.com[L,A]WACLYYMY[PB50!B200][VC60][IUB14!LA12,26,9!LL14]
stockcharts.com[L,A]WACLYYMY[PB50!B200][VC60][IUB14!LA12,26,9!LL14]
stockcharts.com[L,A]WACLYYMY[PB50!B200][VC60][IUB14!LA12,26,9!LL14]
stockcharts.com[L,A]WACLYYMY[PB50!B200][VC60][IUB14!LA12,26,9!LL14]
quoting Elder: "When ADX rallies above both Directional lines, it identifies an over-heated market. When ADX turns down from both Directional lines, it shows that the major trend has stumbled. It is a good time to take profits"
(Trading for a Living, page 141)
although we maybe in an "overheated" market on the downside, the ADX on the above indicies has yet to turn down
implying room for more (gulp!...potentially significant)downside, especially if ADX goes to 40ish before turning
from the Directional movement prospective, the DJIA shows the most promise with +DI just about to cross -DI with ADX
underneath both (albiet falling, it needs to flatline and turn up along with +DI)
stockcharts.com[L,A]WACLYYMY[PB50!B200][VC60][IUB14!LA12,26,9!LL14]
gun to head, COMPX/NDX/SPX/OEX ADX turns down sometime over the next 2 weeks with a reversal in their respective downtrends
cheers |
