Trend | Momentum | Comments - Sample for using the trend table. Warning: This is NOT a trading recommendation! | |
Long-term | Down | Idea for trading intermediate-term under primary down trend. | |
Intermediate | Up | Overbought | According to $NYA50R, market might be topped. |
Short-term | Up | Neutral |
Report Focused On | Buyable dip or the market topped? |
Today’s Summary |
Another day of orderly retreat, expect a rebound tomorrow. |
7.1.2 NYSE - TICK (30 min), still no –1,000 TICK readings today, this tells me that there’s no urgency of selling, therefore it’s a pullback not the start of a down leg. But because in chart 1.0.2 S&P 500 SPDRs (SPY 60 min), there’re still 6 unfilled gaps, so be careful buying dip especially if tomorrow we have another gap up open as I still doubt whether this 7th gap could be held or not.
Tomorrow, I have 2 reasons to expect a green close:
7.0.7 SPX and VIX Divergence Watch, both SPX and VIX dropped today, this happened 5 times recently, the next day all closed in green.
www.sentimentrader.com has a short-term trading model which is extremely oversold today. The oversold of this model, by the way, not work well on a downtrend, so pay attention to how strong the rebound is tomorrow, this will give us a very good clue on whether there’re any signs that the trend is changing.
1.0.3 S&P 500 SPDRs (SPY 30 min), I treat this as a low priority. It might be a “Kiss Channel Goodbye” or a “Complex Head and Shoulders Top” in the forming. I’m not sure if bear could bet on them as officially the market is still on an uptrend.
3.4.2 United States Oil Fund, LP (USO 30 min), too many negative divergences, I think oil will pullback.
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