4 replies to this topic

[Rogerdodger]

From Mike Burk


Technical analysis is the study of trading patterns as technicians we look for repeating patterns.

The current patterns are so extreme there are not enough examples to draw conclusions.

On Thursday there were 1132 new lows on the NYSE the 3rd highest number ever recorded and 33% of the total issues traded.

The records are:

10/20/1987: 1174, 57%

8/31/1998: 1183, 33%

8/16/2007: 1132, 33%

In the late 1980's I found when ever there had been more than 200 new lows on the NYSE there was always a retest of the low. There are nearly twice as many issues traded now so it is probably safe to double that number. The 1132 new lows last Thursday makes a retest of Thursday's low likely.

Edited by Rogerdodger, 18 August 2007 - 11:41 AM.

[selecto]

Retest is the call du jour, it seems.

Swenlin

[spielchekr]

Panic bottoms do seem to get a retest. At least, my selection of "bring of disaster" signal bottoms shows that common characteristic. It's probably a question of "when" rather than "if". And yes, it can penetrate the current low like Teaparty says. Remaining neutral and open-minded until the retest comes and gives us a resolution seems like a wise decision right here.

[BearItch]

On the other hand, why can't this action last week be viewed as a retest of the february-march lows?

[spielchekr]

On the other hand, why can't this action last week be viewed as a retest of the february-march lows?

What happens when a Zweig volume thrust bottom gets tested by another? We're about to find out.

http://www.traders-t...?...ic=75027

Here's a thought. What if the only remaining way to get stock supply cheap is to buy it from the short sellers? These charts are a bit behind, but when I compare them I have to wonder if this isn't the case.