Market Internals 2011-08-25
The expected bounce happened. And based on 3-day advance issues and Tick16 Short Term the rally will be over quickly if not already.
The divergence top on the 3-day advance issues together with the overbought conditions on both breadth readings point to a sharp selloff in the making.
Can start as early as today.
The cycle of breadth is getting tighter and tighter over the last 2 weeks. One side must give way to a new trend on daily.
Comments
Selloff started right on time today.
If 65-70 area acts as resistance overnight, we have a strong case of “spike and ledge” visible on hourly.
Conservative measured move target is 1120 area.