The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 October 22 close.
Reading
1. Long Term Tick16 (yellow line) bearish
2. Short Term Tick16 (red line) in breakout mode after spending days near Long Term Tick16
3. 3-Day Advance Issues (green line) divergence top against S&P new high
Inference
a. #1 is bearish
b. #2 volatility expansion coming
c. #3 a short term top in the making. If S&P does not pullback significantly while 3-Day Advance Issues going back down to neutral, it will turn into a powerful buy signal.
Review
Inference was correct from last update:
– 3-Day Advance Issues went negative and we got this 3 weeks selloff
– 5% drop with a new high printed right after, "extreme volatility" indeed!
Long Term Outlook
Dow has not make a new high with S&P and Nasdaq on this latest rally. This divergence has happened across the globe. Usually such setup points to the markets having these new highs being wrong.
2 historical scenarios similar to what we have now worth mentioning here. One is year 1929 and the other is year 1998. Both happened on unusual circumstances but having completely opposite outcomes. Check out the charts yourself to see what I mean.
The 3-Day Advance Issues and Tick16 both issued long term sell signals last week.
Last year, it took a month of gyration of drifting up til February before I got ...
My monthly update on market internals. The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 May 17 close. ...
It is 1 am Eastern Time and the overnight market is down at the moment.
Japan Nikkei is down more than 1%
But as of close of yesterday Aug 17, the Tick16 ...
The current snapshot of 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2012 Aug 17 Close.
Readings
1. 3-Day Advance Issues having divergence top against S&P
2. Tick16 ST ...
Tick Divergence is a very useful setup for identifying short term tops and bottoms in Emini intraday. It works very well across many different market environments making it one of ...
As indicated yesterday before market close that a pullback is due and that it is likely in the afterhours session, here it is - a selloff in the night at ...
Due to the way Tick indices are constructed, they can be called statistics themselves. Unlike technical indicators that are directly derived from price series, Tick indices are indirectly correlated to ...
Since last update, there were 2 attempts of 1% bounce. Both failed to get any legs.
From both cases, the melt down mode were triggered leading to more selloff.
5% drop target ...
After I posted the breadth bias warning last week. Someone asked for some samples of the potential outcomes from history. Here they are. First one, the one that simply go ...
Market Internals 2013-10-22
Monthly update on market internals.
The current snapshot of S&P 500 3-Day Advance Issues, Tick16 Short Term + Long Term as of 2013 October 22 close.
Reading
1. Long Term Tick16 (yellow line) bearish
2. Short Term Tick16 (red line) in breakout mode after spending days near Long Term Tick16
3. 3-Day Advance Issues (green line) divergence top against S&P new high
Inference
a. #1 is bearish
b. #2 volatility expansion coming
c. #3 a short term top in the making. If S&P does not pullback significantly while 3-Day Advance Issues going back down to neutral, it will turn into a powerful buy signal.
Review
Inference was correct from last update:
– 3-Day Advance Issues went negative and we got this 3 weeks selloff
– 5% drop with a new high printed right after, "extreme volatility" indeed!
Long Term Outlook
Dow has not make a new high with S&P and Nasdaq on this latest rally. This divergence has happened across the globe. Usually such setup points to the markets having these new highs being wrong.
2 historical scenarios similar to what we have now worth mentioning here. One is year 1929 and the other is year 1998. Both happened on unusual circumstances but having completely opposite outcomes. Check out the charts yourself to see what I mean.
Share