That’s Better
November 18th, 2008 at 6:04pm · No Comments
The theme here at “pay attention or pay the offer” the last few days is that we needed to see advancing volume behave better versus declining volume late in the day before we could turn positive on short-term stock direction. I’ve been publishing an intra-day 5-minute chart of my volume oscillator to see if it could lift itself off the mat late in the trading day. Today it finally accomplished that feat, as the low in the oscillator today came in just after 3 PM ET. The rebound wasn’t impressive, but the fact remains that the sellers who had been overwhelming the market closes recently were not around today. It appears safe to get bullish.
The 60 and 135 minute eMini charts support that outlook, with a nice modified DMX divergence in the 60 minute chart and raw RSI and tick divergences combining with trend changes to paint the second to last 135 minute bar of the day green as well. The 60 minute chart registered a net-line buy on todays close too. I’m showing the 5-day advancing volume chart too as well, as it adds additional weight to the bull case.
Targets? The tops of the channels are as follows; 60 minute at 918, 135 minute at 948 and daily at 1046. The solunar model wind is at the markets back as well. I think we see the 948 number at a minimum.
click chart to enlarge
click chart to enlarge
click chart to enlarge
click chart to enlarge
Tags: General Market Commentary · S&P 500
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