On Thursday, the larger market led the Financials. The Financials tried most of the day to make lower lows, but the larger market refused to follow. The Financial bears had to give up at 1400 ET.
It is not uncommon for the market to start moving between 1400 and 1430 ET. It is a good time for longer term traders to adjust their positions for the next day, and it is the start of the close of the energy and bond markets.
The MACD of the On Balance Volume (OBV) did a good job at signaling the 1400 ET uptrend. The following divergence also did a good job signaling a top forming.
The NYSE Advance - Decline Line and $TICK was showing weakness forming in the early afternoon, but the $TRIN was indicating that the weakness was forming on low volume.
I decided to put all the indicators on one chart, and combine the ES and Financial markets on one chart. The MACD OBV indicator stays with the ES 380 tick chart.
Charles
P.S. From Chapter 10 of "Brain Rules" by John Medina titled "Vision": "Tests performed years ago showed that people could remember more than 2,500 pictures with at least 90 percent accuracy several days post-exposure, even though subjects saw each picture for about 10 seconds. Accuracy rates a year later still hovered around 63 percent." ...
"If information is presented orally, people remember about 10 percent, tested 72 hours after exposure. That figure goes up to 65 percent if you add a picture."
Maybe explains the popularity of blogs. May also help explain why most people can not remember what the Minister said during his sermon, but everyone who has seen it can remember the lastest MTV video or a particular scene in a recent movie.
Charles
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