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A drop too far, too fast...


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#1 diogenes227

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Posted 27 January 2020 - 09:29 PM

From the link:

 

 

Once again, this is news arriving to confirm what’s already happened. The NYSI, measuring long-term breadth on the New York Stock Exchange, turned negative last week. That was the tell that the market’s advance was faltering. News can accelerate a decline, but no-news would have also but probably at a slower pace.

 

What we have now is a fast fall and based on one of my key charts it is likely too far, too fast. See the chart of SPY below and note nearly every time the average SPY pull-back (as displayed as a histogram) pierces one of lower green lines, it bounces, and sometimes runs. The Nasdaq Composite chart is showing the same pattern.

 

For the chart and more:

 

So what's next?


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

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#2 Waver

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Posted 27 January 2020 - 10:17 PM

"The NYSI, measuring long-term breadth on the New York Stock Exchange, turned negative last week. "

 

Do you mean the NYMO?  The NYSI is still positive from what I can see.



#3 diogenes227

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Posted 28 January 2020 - 09:15 AM

Look again. Anytime the NYMO is below zero, the NYSI is falling. It turned down last week on the 22nd.


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#4 Waver

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Posted 28 January 2020 - 09:34 AM

so when you mean negative, you mean what the NYSI is derived from - NYMO.

 

Thanks.

Makes sense.



#5 Chilidawgz

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Posted 28 January 2020 - 09:37 AM

nymo0.jpg


Anything can happen...what's happening now?
No one can forecast the future. No one.
 
All stocks (ETF's) are BAD...unless they go up - William O'Neil
 

#6 trioderob

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Posted 28 January 2020 - 10:09 AM

we are getting a classic pop back up today because the $trin was over 2 yesterday - its real simple 



#7 OEXCHAOS

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Posted 28 January 2020 - 10:51 AM

we are getting a classic pop back up today because the $trin was over 2 yesterday - its real simple 

Or we got a Relative VIX Buy...


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#8 bighouse1006

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Posted 28 January 2020 - 11:30 AM

One more dip early next week then higher. Yawn.

#9 Chilidawgz

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Posted 28 January 2020 - 03:13 PM

vxn.jpg


Anything can happen...what's happening now?
No one can forecast the future. No one.
 
All stocks (ETF's) are BAD...unless they go up - William O'Neil
 

#10 OEXCHAOS

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Posted 30 January 2020 - 05:44 PM

Chilidawgz, what's the indicator at the bottom of your VXN chart?


Mark S Young
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