Sign Posts and Worries

i trade primarily off the summation index. Short when its negative, long when its positive. This went negative a few weeks ago. Then I fine tune with cumulative NYAD and the EMA 10/55 cross. These all went negative a week or so ago. That put us in what I call the "danger zone" - i.e. oversold summation which historically has been the time when the bigger wipe outs occur - i.e just when everyone thinks we're "oversold enough" and expects a bounce back. So, so far so good. Here's what I don't know: whether we'll test the "flash crash" lows or not. We probably will. Also, my "gut" is starting to get the sense that folks don't realize that the trend is turning. The great recovery from March 2009 is sputtering and newer, bigger, global problems are starting to pop up. I'm not a fundamental trader, but I can't help think about this stuff. Especially when the news keeps getting worse AND my technical signals are on a sell. mm

I think we can squeeze one more high before the 200 dma turns down, yes the crash lows should be tested, but we are off exactly 100 points again from the lows, the support happened around 1120 two weeks ago ahead of the 50 points bounce, the crash lows may have to wait for another bounce. It is also a cycle low. Just saying...

Suspect T theory, Laundry, will say a trend reversal is in today. My indicators show the S&P 40 points below its pivot on fair volume. This stage of the market I think that is significant and I am adding shorts for the long haul, minor rally to one side. Best, Islander

market hasn't closed yet, but when was the last time we had a down Monday? ....mm

Maineman-How do you have summation as negative? The summation can easily, and imho will, run 500 points South of here before any exhuastion occurs.

Edited by thespookyone, 17 May 2010 - 07:12 PM.

Here's from my blog tonight . I usually lead off with a summation chart every night



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