Didn't like that phrase, huh...c'mon it was late...:o)...underlying reversal...meaning the indicators are starting to move w/o the price, as opposed to unsupported price appreciation.
I'm looking at the last 6 months. Outside of the February spike, look at the nice gradual turn on the MACD(9). Most of the Oscillators exhibit a similar line, if you connect the bottoms...pick any Stoch.
I also see fresh highs on some indicators (outside the volume)exceeding those of the February spike (Bostian's A/D) and some coming close (MFI(9)). All w/o proportionate appreciation in the price.
So, I see some (albeit short) trend reversals building in the indicators...which hasn't shown fully in the price. Now, granted, at a nickel, TA is almost as wide open as it gets to manipulation, but assuming none, I'd watch for the indicator trends to continue to swing up and the price to follow suit...a basic advantage of TA...
Fwiw, I also noticed some positive breadth in the A/Ds for the first time in the past 6 months, likely driven by the 20+M up shares traded earlier this month. However, there doesn't seem to have been a comparable selloff, as the breadth stays positive (DMIs, Bostian's).
I've been trying to use AD trends to spot short term runs. |
