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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (49108)	1/24/2013 12:27:17 AM
From: Johnny Canuck	Respond to of 68156

SP500 continues to follow through on the break out of the old high. The volume continues to decelerate though so caution is advised in initiating new positions and stop losses should be tighten to lock in profits. This is a case of riding the trend till it breaks. The action on the DOW is a lot more constructive as the DOW is following through on accelerating volume. It has a nice gap up today on heavier than normal volume. The DOW transports look heavy and need so back and filling before the next direction is determined. There was high volume today but it still could not break the high of the range of the previous day on a closing bases. COMPQ continues to lag. AAPL earning after the close should set the tone for tomorrow as the forward guidance appears to be weak. If AAPL does not sell off tomorrow significant,, a short term bottom may be in place for this stock as the expectation appears to be even weaker guidance than provided by AAPL. Russell 2000 also looks tired as it failed to advance outside of the range set by the previous day. On the plus side the pull back is on lower than average volume. Financials also struggling to find a direction on the day as the range was tight and did not build on the previous day's range. Volume was light so no reason to get real concerned just yet. Energy failed it first test of the old high. The pull back was on significantly below average volume though, so it will probably try to break it again in the next few weeks. No idea of the time frame of the next try at a new high. Gold again failing to generate an intermediate sell signal, but it looks like there is enough indecision that it is consolidating sideways. Another day where natural gas close where it opened. The range of the last two days is very restricted indicating traders are waiting for some event. The more consecutive days we get where the range is restricted the greater the probability of a large move one direction. It is like a coiled spring. The nature of the direction depends on the news of the actual event and the expectations going into the news.