INDEX UPDATE
===================================
As mentioned earlier, the DOW, for the last 7 days traded in the
9120-9350 range, approximately. A key is the rapid up/down volitility which was evident yesterday and today. This type of volitily is similar to the STAIR-STEPs in AUG and SEPT, which lasted 15 and 20 trading days approximately.
Arik, noticed the MEGAPHONE where there are higher highs and lower lows. If 9350 range holds than this MEGAPHONE may have the same HIGHS and LOWER LOWS. I guess one could call it a DESCENDING MEGAPHONE. I am not that familiar with MEGAPHONEs so if anyone wants to comment - please do.
For those who are familiar with Fibinocci numbers, JAN 17(SUN) would be the 55 day TOP-to-TOP day counting from the NOV 23 TOP. I understand that expiration week (JAN 11-15) is commonly an up week, and I have also noticed, but have not done a statistical study, that the week after expiration is commonly a down week.
Todays action in the NEW HIGHs was a bit wierd. Yesterday the NEW HIGHs jump to around 130, and with DOW up strong the NEW HIGHs were only in the 80's. Is this a slight sign of weakness or are the market internals being skewed by year end/beginning of year buying/distribution. Not sure how to interpret such action, so if anyone wants to comment please do.
With todays action, my SHORT-TERM technicals are back in the upper mid-range for the DOW, and if the DOW continues up there are 2-3 more days of upside. Please keep in mind that when the technicals are in the mid-range, its a flip of a coin. Lets see if this zig-zag pattern continues.
The TRAN was up strong setting a higher high, but the RUT up only .83 when the DOW was up 126.
Lets just say that there are alot of mixed signals - which could be the right environment for quick zig-zag pattern in a STAIRSTEP.
If a STAIRSTEP does continue to develop, then I would expect a surge to the upside towards the end of the STAIRSTEP.
Seeya
|
