Trading Edges That Last
- You May Also Like
To utilize S&P500 Tick1K Index, we can start from its basic properties of being highly correlated to the bar to bar pattern with Emini S&P (and SPY too) on 5-minute ...READ MOREMy monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 May 17 close. ...READ MOREMonthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 July 19 close. ...READ MOREThe current snapshot of 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Sep 18 close. Yes, am posting the chart 1 day late. ...READ MOREThe current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Nov 19 close. Reading 1. Long Term Tick16 ...READ MOREAs on last Friday, the 3-day advance issues was short term oversold. Thus it is expected a bounce should happen on Monday and that has already happened. Critical price level of ...READ MORESince last update, there were 2 attempts of 1% bounce. Both failed to get any legs. From both cases, the melt down mode were triggered leading to more selloff. 5% drop target ...READ MOREMonthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2014 Jan 23 close. ...READ MORETrend buy day are the days where the stock market indices just keep going higher. Day traders are often trapped on the wrong side of the market on such days ...READ MOREMy monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 March 19 close. ...READ MORETrading with Tick Index: S&P500 Tick1K Index MismatchMarket Internals 2013-05-19Market Internals 2013-07-21Market Internals 2012-09-19Market Internals 2012-11-19Market Internal Update 2011-05-10Market Internals 2011-06-12Market Internals 2014-01-23Trading With Tick Index: Early Detection Of TrendMarket Internals 2013-03-19
As Featured In
Market Internals 2013-10-22
Monthly update on market internals.
The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 October 22 close.
Reading
1. Long Term Tick16 (yellow line) bearish
2. Short Term Tick16 (red line) in breakout mode after spending days near Long Term Tick16
3. 3-Day Advance Issues (green line) divergence top against S&P new high
Inference
a. #1 is bearish
b. #2 volatility expansion coming
c. #3 a short term top in the making. If S&P does not pullback significantly while 3-Day Advance Issues going back down to neutral, it will turn into a powerful buy signal.
Review
Inference was correct from last update:
– 3-Day Advance Issues went negative and we got this 3 weeks selloff
– 5% drop with a new high printed right after, "extreme volatility" indeed!
Long Term Outlook
Dow has not make a new high with S&P and Nasdaq on this latest rally. This divergence has happened across the globe. Usually such setup points to the markets having these new highs being wrong.
2 historical scenarios similar to what we have now worth mentioning here. One is year 1929 and the other is year 1998. Both happened on unusual circumstances but having completely opposite outcomes. Check out the charts yourself to see what I mean.
Share