[RumorDude]
Wed May 1, 12:30pm PDT Markets
I agree w/madtrader here. I think today's move, with the relationship between low and highs over the past few days as well as the september lows shows that the immediate downtrend is ending and we'll end up connecting the dots between the sept lows and the april lows for the new uptrend line. The move today ont he DJI is compelling, but I find the semiconductors move today as just huge. higher lows and a good spike reversal today. Even though VIX/VXN aren't up high, I don't think you can ignore so many other bullish signals coming in. none
[madtrader]
Wed May 1, 12:13pm PDT Market
I don't think people can call this a short-covering rally anymore. Today is a major key reversal day for all major indices. What is also interest (duh of the day) is how the QQQ daily chart jumped out at me. Market bear phases has usually been marked by 3 waves of selling. One can make the case that on weekly basis, NASDAQ did just that with the capitulation bottom back in September. Since it's covery high in January, NASDAQ has had 3 waves selling again, with the force of selling receeding each time. So, it would make sense to THE low beeing marked here. I was, of course pre-mature pounding the table 2 weeks ago for a bounce. We did get a bounce of nearly 10% then, but the problem was that it didn't have the support of significant volume. COMPX, including today is on pace to have 3 accumulation days in one week. Normally, 4-5 such days in a 2 week period marks major bottoms. So the verdict is still out. BTW, for those who are more interested in chart patterns. The bottom we are shaping up to have for the past 3 trading days is called a Pipe Bottom. You know, the shape of a pipe with hopes of course of expansion on the right side of the chart. none |
