Market Internals 2011-08-25

By Lawrence

The expected bounce happened. And based on 3-day advance issues and Tick16 Short Term the rally will be over quickly if not already.

The divergence top on the 3-day advance issues together with the overbought conditions on both breadth readings point to a sharp selloff in the making.

Can start as early as today.

The cycle of breadth is getting tighter and tighter over the last 2 weeks. One side must give way to a new trend on daily.

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Comments
  • Lawrence Chan August 25, 2011 at 9:46 pm

    Selloff started right on time today.

    If 65-70 area acts as resistance overnight, we have a strong case of “spike and ledge” visible on hourly.

    Conservative measured move target is 1120 area.

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