I did not cover anything and probably will not.
All major indices are negative except NDX which is flat.
I thought there could be some sort of panic selling around 2:15, but nothing serious happened. However there is something different today. When I look back, I can see that today truly scared some bears including me and some stops were run in the morning.
Plus, today is the second consecutive day SPX was rejected at the top line and showing relative weakness. I would rather to see a weaker NDX but it has still room before testing its long term top line.
Yesterday SPX rejected and gapped down below the TL and today's gap up sharply sold off from the get go and never really recovered.
At the same time Russell2K showed significant weakness today for some reason. This started to look like they are trying to skim every dime they can. They buy one index one day and rotate into another the next day.
This is a typical action seen in a congestion move or trading range. No trend no consistency.
However I am concerned because we are so close for a breakout and we spent too much time near the top line.
At the same time my bonds / stocks indicators are darn close to give another sell signal as NDX reached to the highs while there was no significant move in bonds during the same time.
As you may remember, I had posted something about time factor a few days ago, basically suggesting that SPX may put a top in early March. If this is the case then I think there could be more sleazy days like today and yesterday in coming weeks. This is really emotionally wearing out and I guess it is a good thing from sentiment stand point.
Update
Started by
A-ha
, Feb 22 2007 03:23 PM
2 replies to this topic
#2
wallofworry
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- Traders-Talk User
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Member
Posted 22 February 2007 - 03:45 PM
X,
Good trades. I have positioned my trades based on yours and I think we will be "in the money" very soon. I think the decline has started and when it gets obvious to the masses I will *cautiously*leverage up 2x
#3
qqqqtrdr
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- Traders-Talk User
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Posted 22 February 2007 - 04:14 PM
Which way is this market going to go. No telling here. Weakness in housing is offset by strength in business building. NASDAQ and Semiconductors are looking hot. On the flip side contrarian indicators are now showing possible topping within the next couple of weeks. OEX Open Interest and OEX Put/Call are definitely bearish intermediate term, but the market trend bullish. On the negative side the daily QQQQ's broke 20-day 200 bollinger bands on decreasing volume. This should also show weakness.
Barry
