Member
Posted 19 January 2017 - 12:37 PM
Are we at the start of the next leg down?
One of the things to watch to see if we are a top or the next leg down is decliner issues vs advancing issues... Currently we are seeing NASDAQ and NYSE have decliners lead advancers 2:1. At this point if poor breadth continues to be this bearish with the price of the indices not going down it eludes to the creation of a top...
Barry
Member
Posted 19 January 2017 - 01:57 PM
IWM, GS, DIA all appear to be unable to produce a bounce today, which is mark of a selling market. Good chance we have seen the local top until 1/27 when we should be at an important lower level in setup for a final move higher. January Defect trade appears to be working at mid-day, which would end 1/'27. A strong finish today is very bullish, but going lower by close is bearish as the move likely continues for the next week. A second sell on close is part of the Defect trade as yesterday was.
