Tuesday, November 24, 2009
Bearish Signs
Typically on a day like Monday, with a big gap up and subsequent squeeze in the 1st hour, its not common for the market to slide down for the rest of the day. It is abnormal price behavior. There are no set rules in the stock market, but there are patterns that usually signal weakness or strength. Yesterday, despite the up 1+% number, showed weakness to these weary eyes. Also, crude oil underperformed and a wide range, going from high 79s to low 77s while the stocks were sliding slowly lower. Finally, we had bulls being stubborn, with the put call ratio very low, especially the equity put call ratio. Also, we were turned back forcefully from 1111 again. We are topping out here, and the next 40 points looks like its going to be down, not up.
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2 comments:
I think this is the moment of truth dawg.
The market has been ranging for a about 2 or 3 days longer than it has in the previous two tops.
The last two tops, the market rolled down. The big volume up days were non existent that signals the reverse of capitulation.
Either we do the same here, and roll down, or we have a real blow off top.
Looks like you're at even or close to it. Play it safely.
I think this is the moment of truth dawg.
The market has been ranging for a about 2 or 3 days longer than it has in the previous two tops.
The last two tops, the market rolled down. The big volume up days were non existent that signals the reverse of capitulation.
Either we do the same here, and roll down, or we have a real blow off top.
Looks like you're at even or close to it. Play it safely.
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