The 1000 ET Existing Home Sales Report scared the short sellers and encouraged the long buyers, causing a market reversal from the first 30 minutes of bearishness. After the report, the market confirmed buying opportunities on corrections back to the previous high pivots.
However, the market started to show weakness when it reached 1364. The NYSE Advance - Decline line after 1100 ET started dipping below previous high pivots. As of this writing, the market is trading at the 0930 ET open of 1354. We will have to wait to see how the market trades after 0100 ET.
In the chart above, notice how the market has traded both at the upper and lower limit of the Nearest Daily Range Extreme Average, as described in a previous post. This typically happens when the market trades in a narrow range for the morning or even the entire day. Also notice that the market reversed on the upside at the +1 Standard Deviation of the Upper Average of the Nearest Range Extreme.
Charles
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