Market Internals 2012-07-24

By Lawrence

The current snapshot of 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Jul 24 Close.


Readings

1. 3-Day Advance Issues printing new low with S&P at the same time

2. Tick16 ST is moving from overbought zone back down

3. Tick16 LT back to neutral zone flattening out

Inference

#1 confirms S&P in daily timeframe down trend

#2 tell us that the current sell off will be over soon once it gets back to neutral zone

#3 tells us that there is no strong direction for the market at the moment

#1 + #2 points to a pullback is due but it is likely that another down leg pushing S&P lower will follow

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Comments
  • Lawrence Chan July 27, 2012 at 8:05 am

    The pullback objective was completed yesterday.

    If today ES failed to hold 1340 by close, another down leg is on its way.

    • Lawrence Chan July 28, 2012 at 9:42 am

      2 rumors (or should we say b.s. promises?!) from euro zone forced all out stop run.

      That means the bearish scenario (i.e. another leg lower) is now gone.

  • Lawrence Chan July 31, 2012 at 10:38 am

    3-day advance issues now overbought, pullback from 80s is likely.

  • Lawrence Chan August 8, 2012 at 12:26 am

    The pullback from 1380 down to 1350 has produced a very odd oversold condition in Tick16. And we have now seen the effect of this oversold condition – a squeeze pushing ES to 1400 area.

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