Market Internals 2012-08-17

By Lawrence

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 is in overbought zone

3. Tick16 LT failed to push above neutral zone

Inference

#1 bearish – S&P ready for a significant pullback

#2 bearish – tell us that a selloff / consolidation is coming until Tick16 ST gets back to neutral zone

#3 bearish – tells us that down swings are expected to be stronger than up swings

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Comments
  • Lawrence Chan August 23, 2012 at 11:42 pm

    Nailed the pullback again.

    First sign of oversold in 3-day advance issues.

    It is not a strong condition for a bounce, yet.

  • Lawrence Chan August 29, 2012 at 11:25 pm

    Compression!

    All 3 breadth indicators are squeezed to their neutral zone.

    Major breakout in the making.

  • Lawrence Chan September 7, 2012 at 7:17 am

    3-day advance issues overbought + div top potential

    tick16 LT bearish bias

    a selloff in the making

  • Lawrence Chan September 12, 2012 at 11:45 pm

    The selloff materialized in NQ with a 50 pt pullback but nothing on ES and Dow.

    Not quite normal.

    Tomorrow Fed announcement will be critical.

  • Anna Karenina September 14, 2012 at 9:02 am

    Lawrence hi, what’s your long term view on ES now after this fed announcement? thanks.

    • Lawrence Chan September 19, 2012 at 1:44 am

      Long long term (6 months +) Limited up side

      Short term (this week) op ex drop back down to 1430 and below

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