The money flow is still positive on the 15 - and 30 min charts.However, it already to negative 15 min chart moves, and there are good chances, 30 min money flow towards bears and trending tasks.When this is the case we are looking for could be negative trade today.
The U.S. dollar index is, and it can help the bears.
Flow on money: money flow continues to negatively on the hourly charts to stay. Today's it ahead not significantly affected.On 30 and 15 min charts who it was positive (I have mentioned yesterday, I would see these diagrams) .Dennoch, money is in 5 min chart flow negative again always.
Overall, from the potential money flow I would say that the most important sentiment (hourly chart) be further weak in addition we may tomorrow at the market open (5 min chart) .If done decline and we see, change into the River to 15 - and 30-min chart he maybe we have some strong decline.
Other things to consider is:
-The ETFs already deleted after the market close and have already down werden.so traded index EMINI futures probably we weak opening tomorrow.
-The US dollar index close is its high seen on October 19 and 27 October, 2010.If this level is, broken many traders may, that the US dollar no longer down trend is. for greater decline in the stock market might additional fuel.
-There are not many economic reports, most likely the trend mainly through technical analysis over the next few days is inspired (not surprises should be).
-Over the past few trading days, we have an increase in Volatilität.Ich will reduce bar set to avoid intraday technical indicators to a situation "if it is too late" on most of my time
The first hour of trading went on high volume and will most likely second hour on strong volume too.High volume and high volatility while up move beat up move slightly, and I don't expect strong up movement today to sehen.Noch, anything can happen.
U.S. dollar index is down, and it helps bulls.
I mentioned a week ago in the "Advance/Decline" post on February 22, 2010 "... when you take a look at lower time-frames, you may notice that many indicators are overbought in short-term, by signalizing a possibility of some retracement, at least in a short-term. The stock market (majority of indexes) right now is in the range of its side-way trading where it was in period from November 10, 2009 until December 18, 2009 This is another factor that may suggest a possibility of staking in this range for a while...". In the past week we have seen exactly this scenario when the indexes (S&P 500, DJI and Nasdaq 100) stuck in side-way trading. One day we saw indexes dropping down and the next day the strong recovery moved them back to the November-December 2009 highs. Then, we had another day of strong decline followed by another strong recovery. At the end of the week the indexes are almost back at the November-December 2009 highs
Now, after a week of volatile trading, I think a correct question for technical analysis would be to ask if the longer-term indicators (that were bullish last week) are still bullish enough to push the indexes higher toward the next possible "pit-stop". Another question regarding shorter-term technical indicators would be to check if those ones that were overbought in short-term last week are still overbought.
From technical analysis prospective, by taking a look at the longer-term index charts (1- and 2-year S&P 500, Nasdaq 100 and DJI charts) I would say the same I said a week ago. The January's decline was pretty strong and during that decline we had very strong bearish volume surges and extremely negative advance/decline readings. If you check (Chaikin , Index or SBV) during that decline you may see that the stock market was strongly oversold during that time and accumulated oversold power still has not been released completely. Because of that, I would continue assuming that the odds are still good for further recovery towards January, 2010 highs.
Taking a look at shorter time-frame charts, I would not say that the technical indicators are overbought as they were overbought a week ago. Majority of technical indicators on the 60-day chart are slightly bullish or neutral by suggesting possibility from flat to rising markets. However, you should remember that shorter-term outlook may change any time during a trading session on any day. Furthermore, I would recommend monitoring the shorter-term charts for changes in a sentiment during the trading hours.
Overall, I would say that results of my technical analysis are still Bullish and I see good odds of market moving higher. On the other hand, there is a possibility of volatile side-way trading in the same range the stock market is now. In November-December 2009 the indexes (NASDAQ 100, DJI and S&P 500) have been in side-way action for a month. Now, they have being moving side-way at the same levels for a week only. So, there are still some odds we may see further side-way move.
The indexes did not bounce up (as I expected) after extremely lowadvance/decline readings seen on May 14, 2010. Last week I listed bad and good things, on my opinion, and if we compare the previous week decline with the recent week decline we may say that the difference is that the decline on May 20, 2010 was supported by big bearish volume surges. High volume surges during such decline are a very good sign to support extremely low advance decline reading.
Overall, there are several very strong signals as I see:
There is only one thing that on my opinion is not very nice - is a big number of low advance /decline reading over the short period of time. This is not a very good sign. Even if I am right and we will see a recovery, I would be very cautious and I would watch that recovery closely.
Posted byTraderJoeat7:45 PM
