Bobby: can you give us a hint why
1) Well I posted this AM that I thought, several indices with bearish pennant formations were morphing to rectangles. What I meant to say was morphing into bearish flag formations.
These formations as I see them are forming and remain valid. Look at the (daily actual chart) on: NYA, SPX, IND, COMP and OEX. Further movement to the upside tomorrow would invalidate these formations.
I also feel that the gaps into this rally, especially in the Naz stocks, did not establish a good foundation for a extended rally. I expect the gaps to be filled, soon.
2) My voodoo, time/sales analysis, indicates S/MMs distributing into the rally at the close on some Dow and Major Naz stocks. In addition, I believe there was short selling to accommodate buying! If my analysis is correct, this would require at least a retrace for S/MMs to cover and accumulate. However, we may see some initial moves up in the am, before retracing.
Note: As of this writing I did my end of day download from Dial Data. The Dow Indices data is corrupt again. No theoretical formation charting, for me, tonight! Checking other quote services looks like I can rely on the close numbers at least.
Now having stated my case above, I should note that my personal short/medium term MACDX OSC indicator gave short term buy signals on the Dow Industrials & Transports, NYSE Comp, NASDAQ Comp, SPX, today and on the RUT yesterday. Neither signals of my medium/long term MACDX OSX have reversed their respective sell signals, yet! This indicates a bear rally, so for!
I almost always loose when I go against these indicators. However, this is only a very short term buy signal, so far!
BWDIK
Regards,
LG
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