Market Internals 2012-06-17

By Lawrence

The market internal updates is turning into a monthly update …

First I was told that I need to post the chart here so that there is a reference to what I am talking about. So here it is the current snapshot of 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Jun 15 Close.


Readings

1. 3-Day Advance Issues is having a divergence sell setup as S&P is pushing a higher high while the indicator is not

2. Tick16 ST is very overbought

3. Tick16 LT back above neutral zone

Inference

#1 and #2 tell us that a pullback is due within a week for about a week to 2 weeks

#3 tells us that first pullback is a buy

So, once the 3-Day Advance or Tick16 ST going back down to their respective oversold levels, S&P should get another push higher

Let me know if you like this new format.

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Comments
  • Lawrence Chan June 23, 2012 at 11:05 am

    Got our oversold reading as of last Friday.

    Notice it was very difficult to time if you try to fade the top without the breadth information.

    If Monday/Tuesday we get a low, S&P is good for another pop higher.

    The expectation is that a low should be formed within 20 pts from prev. week low.

  • Lawrence Chan July 1, 2012 at 10:26 am

    Nailed the low. And a wild run for a week.

    Now that 3-Day Advance has first touch of its upper boundary, it has completed the first objective for this long.

    Sometimes, targeting is not necessarily based on price =)

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