DIMINISHING BUYING PRESSURE

A member of the Doji family like this that closed below the "midfield" with volume lighter than the previous two days indicates diminishing buying pressure and indecision. Today's volume is actually the lowest in 12 sessions.

A long black candlestick tomorrow would complete a reliable bearish Evening Star formation. And, since QQQ has the narrowest range day since 5/25/12, a gap or a Marubozu seems probable for tomorrow.





And, this hourly chart portrays that "indecisiveness". When the market doesn't know where to go, it stays in a box.

Edited by TechMan, 27 June 2012 - 10:17 PM.

They all going to be surpised in the next few days. However, I don't know why I came up with this insight a long time ago. Bears loose too. Don't put much into puts, you might not have a market to cash out.

Or maybe, the rally is just getting started???

AChartist - I was thinking earlier about your call for a "shortable" high on Wednesday, which is today. ============= Meanwhile, the Dollar's really getting whacked while the Euro's rallying hard. I've no idea what's going on. However, futures reaction seems muted. Last week, ES probably would've jumped 10 points already.

Edited by TechMan, 27 June 2012 - 10:56 PM.

A member of the Doji family like this that closed below the "midfield" with volume lighter than the previous two days indicates diminishing buying pressure and indecision. Today's volume is actually the lowest in 12 sessions.

A long black candlestick tomorrow would complete a reliable bearish Evening Star formation. And, since QQQ has the narrowest range day since 5/25/12, a gap or a Marubozu seems probable for tomorrow.





And, this hourly chart portrays that "indecisiveness". When the market doesn't know where to go, it stays in a box.

We could see the resolution as soon as tomorrow morning ............
GDP and job data will tell if today's story about durable goods and housing numbers are true or false. This market is totally reactive to data and news.

Edited by redfoliage2, 27 June 2012 - 11:13 PM.

We could see the resolution as soon as tomorrow morning ............
GDP and job data will tell if today's story about durable goods and housing numbers are true or false. This market is totally reactive to data and news.

Thanks for the reminder.

Barring major surprise of the jobless claim or large deviation from the prior GDP estimates, I'm not sure how much or how lasting the impact of those data from the past may have on the market.

I believe Supreme Court decision on President's health care reform is also due tomorrow. XLV surged 1.08% today, and I haven't noticed any unusual options action.

In addition to all that, we also have EU Summit for the next two days.

I guess you'd never know for sure, but any effect should be temporary.

We could see the resolution as soon as tomorrow morning ............
GDP and job data will tell if today's story about durable goods and housing numbers are true or false. This market is totally reactive to data and news.

Thanks for the reminder.

Barring major surprise of the jobless claim or large deviation from the prior GDP estimates, I'm not sure how much or how lasting the impact of those data from the past may have on the market.

I believe Supreme Court decision on President's health care reform is also due tomorrow. XLV surged 1.08% today, and I haven't noticed any unusual options action.

In addition to all that, we also have EU Summit for the next two days.

I guess you'd never know for sure, but any effect should be temporary.

Recent data history shows that GDP and job data won't be good tomorrow. For EU summit I see it's just a waste of time, they will not come out with an agreeable plan on the most important things they need to fix.

Edited by redfoliage2, 28 June 2012 - 12:38 AM.

Well, looking at futures, it appears we are going to have an ugly Thursday. A gap on the downside is likely to run... So it appears we have at least a few more days before the uptrend starts.

Tech, when I do a 1.5 lookback, of cycles that correlate for 1.5 periods, there was

a reaction peak up on Tues-Weds. When I do a 2.0 lookback, there is nothing but down.


Now weekly is interesting, sort of neutral with downward average bias, and one hard

down cycle next week is a potential to allow these short term disaster cycles to hit.


The daily low is about Jul 18.

AChartist - I was thinking earlier about your call for a "shortable" high on Wednesday, which is today.


=============


Meanwhile, the Dollar's really getting whacked while the Euro's rallying hard. I've no idea what's going on. However, futures reaction seems muted. Last week, ES probably would've jumped 10 points already.

Thanks, AChartist. Like I said, nobody does it better.

Yesterday, it seems that "everyone" had decided to turn bullish after a day of "indecision", as so referenced above. I'm still seeing more down before up, so I'm with ya on this one.

Mr. Bond seems to be on our side too.