Ian Woodward's Investing BlogStock Market: It’s the Real Thing!
We had a follow through day to the downside, and the odds favor “The Real Thing” over a “Knee Jerk” as I suggested as the alternatives in last night’s Blog Note. I will treat this as an update to yesterday, so I will show you the charts with very little verbiage:
Ten Days Gains were lost in just two days on most Market Indexes:
There is an inviting Gap between 3021 and 3076 that is below here and needs to be filled on the Nasdaq:
The Russell 2000 (RUT) took a big hit these last two days with 7 Buckets down:
…While the VIX is inching up as you would expect. It needs to get above the 200-dma at 17 to cause fireworks:
Since the two big days at the turn of the Year we have been waiting for the Big Guns to produce heavy selling and now we see it:
The Leaders are getting Trounced:
7.2 Buckets in two days is hard to recover from, but don’t count out a Bounce Play. The quality of that Bounce will tell us a lot:
As we would expect, there is a big shift to the downside on the % of Stocks in the Lower Buckets:
The majority of the evidence points to the downside, but sometimes the Market will fool you. Stay alert, and Keep your Powder Dry.
Best regards,
Ian.
RSS 2.0 Feed