Zeev, that divergence on jan 2nd, plus may wave counts and the tremendous amount of pessimism, good morning america had a couple of stock analysts on in their first segment on the morning of the 2nd, lot of fear in the media, plus all the doom and gloom in the headlines around the bay area.
the 900 new lows i thought was a selling climax and i told dmp to get long and strong the next day, i also noticed the late december rally was a bear flag and exited for a short swing into the jan 2nd low, but covered in a hurry when my wave count and the good morning america interview was telling me we were in panic mode, i luckily got long and strong fully before the fomc lowered rates.
there is a divergence now, but i don't see the same level of fear and none of my indicators are giving me the kind of signals they gave then to make sure that we have seen a real bottom. There would probably be a lot more new lows now if the december selling climax wasn't driven even harder by tax loss selling, doesn't also mean the new lows list will grow even more over the next week.
stockcharts.com[m,a]daclyymy[df][pa20!a30!a13][vc60][iUb14!La12,26,9]
there are plenty of late toppers that good give more of the bubble up.
Oh another sentiment indicator i have noticed coming out near trading lows during nov/december was my netscape mail headline coming up with something about the stockmarket slide, that happened on friday, also we had 90% downside volume on friday, but not a/d.
might have been good enough for a st rally, but i'm mostly watching with some of those gold stocks that haven't been sucking so bad lately -gg-
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