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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: augieboo who wrote (24342)	1/15/2003 7:04:41 PM
From: herry iball	Respond to of 30712

"Besides this one" Augie, that one has been 'fulfilled' by the move up. a divergence states that the underlying price movement is 'suspect' and that a reversal may be near....and sure enough, we got a move up....ergo, that divergence is over. This is the one I was alluding to: share.esignal.com It's weak, and the waves aren't well defined (it's basically flat) but that 2 day pullback was merely sniffed at by the stochastic, although RSI shows it as a negative divergence. I find that in order for it to be a tradeable event, all three indicators (plus RMI, not shown) need to be in agreement....otherwise risk to reward is not high enough to enter the trade. Today, while perhaps viewed as a just a pullback, may be something more....SPX Fibo's share.esignal.com green lines are the fibo's for the bounce from Dec 21, and in one day we retraced over 20% of our run. Also, green lines are fibo's for the range we've been in since the 6th, and we closed below the .618 for this range as well as engulfing three days worth of movement, as well as closing below the 50% area of both the large green candles from the 6th and 9th. On the other hand, we're still trading well over the 50% area of the whole move from Dec 31.... (While it may seem like micro-analysis, I've found that candlestick analysis along with Fibonacci retracement, especially in range bound markets, can give a bit of insight on the underlying strength or weakness.) In my eyes, I see weakness in the SPX (I trade mostly SPX options and ES). But as you know, all results/analysis are somewhat suspect during OPEX.....