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< Back :: Market Internals and Direction

Market Internals and Direction

If you haven’t glanced at yesterday’s Market Statistics its worthwhile to do so in order to appreciate how quickly the picture is changing here.

Please keep in mind that until recent trading ranges have been broken we can not call a top to this market. We certainly are justified in exercising extreme caution. Note that I’ll be buying selected stocks on the long side myself if conditions present themselves – caution should not freeze us into inaction, but prepare us to take action. Use stops, take profits where required and remain alert.


NASDAQ Composte

  1. Declining new highs even as the market made new highs for 2004 was, as always, a clear sign that the market was starting to stall
  2. New lows continues to expand – the laggards of this market are heading lower
  3. Advancers – Decliners has taken a sharp hook downward
  4. Declining volume is starting to assert itself
  5. Total volume was high – that was a significant sell off yesterday
  6. Drew a “bearish engulfing” candle on the daily and started a new downswing.


NYSE Composite

  1. shares all the same comments as COMPX and,
  2. the a/d volume line has turned sharply upward; I plot a/d volume inversely to make it easier to spot changes, so a rising line = rising declining volume.


TSX 60 – has pulled back to the rising trendline here and may be setting up for an “island reversal” pattern (a gap down today or in the next day or so could complete this) which is a significant reversal pattern.


TSX Composite – fails a test of top and breaks the base of support by filling the gap.

04.12.08 09:18 #