5 replies to this topic

[NAV]

IWM. Based on a 30-min sell. No hourly sell yet. I have a gap-down signature for tommorow.

Edited by NAV, 07 August 2007 - 03:21 PM.

[OEXCHAOS]

I have nothing but a sloppy uptrend on the ES, and two oversold readings at that, plus positive volume coming in late. That said, on the Russell, come downside volume did come in late. I just don't trade it so I am not intimate with the tells.

[NAV]

I have nothing but a sloppy uptrend on the ES, and two oversold readings at that, plus positive volume coming in late.

That said, on the Russell, come downside volume did come in late. I just don't trade it so I am not intimate with the tells.

I have a gap-down signature on ES as well. We'll see...

[eminimee]

With CSCO in the formation it's in.....and it's up nearly 2 bucks....well....I don't have to say anything to a pro with stops.

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=2&mn=2&dy=8&i=p27723972068&a=90931516&r=474.png

[selecto]

Nav, what does a gap down signature look like?

[NAV]

Nav, what does a gap down signature look like?

Selecto,

There are quite a few signatures. In this particular case, on the ES, the 5-min was overbought and entered a sell. The 30-min is on the brink of a sell, but just a hair's breadth away. By the time the 5-min sell gets oversold in the globex session, the 30-min gets pushed into a sell in the globex session, which would exert downward pressure all thru the night. By the time it opens in the morning, it manifests as a gap-down. In case of IWM, 5-min and 30-min were both on a sell at the close, which should extert downward pressure on the hourly.

This works 80% of the time. But news based events can sometimes change the mood of the markets by the open. In most of the cases, momentum and trend trumps all this news based noise. In this case, let's see what CSCO can or cannot do by the opening bell.