More chart stuff...
on the Nasdaq Islands Formations...
Noticing something interesting about all the nasdaq islands we've had lately....first of all, looking back on the 60 minute chart, where they always show up the best, there were not that many until recently, except for a few I saw which started with gaps down.
Since February, there have been six of them, all started with morning gaps up, rather large ones usually, except for the first one on the chart which had a gap down in mid February. All of them are 3-5 days in duration, and all preceded significant short term downside.
Now I know that this number isn't even close to having statistical probability, but it sure is interesting that all 6 started with premarket gaps and ended with gaps down, creating the islands and excluding the one in Feb which started with a gap down, all the morning gaps up since March turned out to be lower highs, and short term TOPS with tough resistance at the gaps down. Looking at the last five, NONE of those gaps down was ever filled, just a few piercings.
Scary, as we are now on day two of another one of these potential islands forming, and this one has the biggest gap up of all.
mywebpages.comcast.net
Someone should send this chart to the PPT so they can see that their saving the nas from the edge of the cliff moves do more long term damage than they help... |
