Jaime,
I am still sticking to my position that until we break 8800 we are still in a RANGE TRADING TREND, overall downtrend is now put to the side/not in the picture now.
You could be right about the uptrend. There are quite a few positive signs appearing such as the SPX and BKX surpassing previous peaks, and the RUT is up nicely implying that the money is spreading around.
The decision I have to make for myself now is whether to play the downside. I am still sticking to the short-term TOP/reversal to start WED/THU/FRI, but the question is whether its tradeable on the downside. If less than 150 points, then its not feasible.
The only negative I can see is the NEW HIGH/NEW LOW. The NEW LOW has improved at 7 which is quite positive, but the NEW HIGHs only at 33. We are only 750-800 points off the all time highs, but about 1200 points off the bottom.
When the DOW was at 8000-8100 range before dropping to 7500 2 weeks ago the NEW HIGHs got over 100. We are now 500-600 points higher than that period and already in the 9th day of the upswing. Is this just a lagging indicator, or is it hinting of something negative. Im not sure myself. I would feel more comfortable of the uptrend position if the the NEW HIGHs are much better, close to the 150 range, as I have indicated in the past. Otherwise, I will still hold onto my range trading trend.
Seeya
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