1 reply to this topic

[ogm]

Look how much energy has been spent by the summation on a rather insignificant decline. ( in the grand scheme of things).

Watch that green channel. Its a definitive uptrend for the time being. I'd rather we not retest its lows, but we probably will this week.

But that said, it may very well be where the bottom is, since summation needs to recycle and regain some energy, if the market is going to decline further.


By comparison, look how deep declines are usualy on such a drop in summation.

I view this as a bullish divergence, btw. Similar the NAMO may be making divergent low here too. Unless we crash and make another extreme low reading.

Summation went almost full circle from the peak in internals at 1500+ in Jan 2007 to where we are now, at almost -1500. Of course it can drop lower, but most of the energy has been spent.

Edited by ogm, 04 August 2007 - 09:15 PM.

[Islander]

I think I agree with you. We are oversold and could retrace for a run at 1510 SP5 or more, then off the cliff to new lows. Overall, I am not trying to trade just carrying shorts in the indexes and I am ahead since 14000 on the Dow when market topped in my view. Bonds have been rewarding and I think there is more to go there too. I am looking for gold and currencies to become active when BB lowers rates (in a panic) in about November. This is about normal for a correction, but the risk is in how folks react to the next leg down which will be slightly unnerving for the younger set. Best Islander.