Wednesday, September 30, 2009

9/30/2009 - Market Update

Some strange movements have been going on in the market the last couple of days.  We saw a 100+ point move on the DOW based on one of the lowest volume trading days I've seen, and then retrace just about all of that today.  Seems manipulated to me, but we'll save that for a different blog.

With that said, I do expect a fairly large move to occur within the next few trading days based on a couple of reasons.

1.  Symmetrical triangle on the 15 min chart.
2.  Market is now trading at the very tip of the rising bearish wedge.

The market can break out either way.  The coming movement will determine the direction of the next leg.


Posted by Vagabond at 5:45 PM

3 comments:

  1. AnonymousOctober 1, 2009 at 7:37 AM

    Good eyes with the bearish wedge. I was still seeing the support trend for the past seven months. What are you seeing on the Accumulate/Distribute indicators. Seems like the pros have been bearish late in the day for 4 of the past 5 days. That tells me a bearish turn is coming soon. I just don't have the indicator on hand to visualize.

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  2. AnonymousOctober 1, 2009 at 7:39 AM

    BTW, loved Dr. Elder's books and workbooks.

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  3. VagabondOctober 1, 2009 at 6:17 PM

    I didn't find much use for theAccumulation/Distribution from my past experiences, so I can't really speak to that in detail. The past 6 / 7 trading days have been down, and the market could very well roll over - but wait for the 20 EMA to cross below the 50 EMA to be certain before making large short plays.

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