***** TA Update (intra-day) *****
The Nasdaq gapped up on the hourly charts at the opening and rallied to 2079, finding some resistance at the 2080-2090 area, and has now dropped back down to the opening price of 2042. It may fill the gap during the mid-day countertrend decline as investors and traders take profits. Few want to be greedy on the long side in a downtrending market.
The Nasdaq TRIN is still very positive at .57, off of it's best levels during the countertrend period, with it's stochastics still crossed down, and the a/d i holding up so far at 20/13, still better than my criterion but closing in on it and needs to hold above it for the odds to favor this index to hold on to most of it's gains today, and up/down volume is 14/5, on moderate volume of 980M shares, projecting out to around 2.0-2.2B shares, so that is a bit encouraging.
The Dow is near it's lows of the session as profit-takers are stepping in. The Dow appears to have resistance at 10,700. The NYSE TRIN is rising a bit to .90, with a/d of 17/11, up/down volume of 5/3, and volume of 710M shares.
The Nasdaq also has resistance at 2130 and 2190, so it has a lot of work to do in order to reverse it's downtrend. One or two day technical rallies do not indicate a bullish reveral, but a resetting of the supply/demand and technical indicators. The gap remains at 1975 (and a possible retest of prior bottom of 1934), and just like the 1941 gap took some time to fill, this one may as well because the buyers have not given up. A very powerful move up with heavy volume is needed to invalidate the downtrend and likely gap fill. |
