This morning we were given a nice three-wave advance with a text book 50% correction.
Once the market hit the +3 Standard Deviation line, the bodies of the candles remained between the +3 and +1 Standard Deviations, and then advanced to slightly above the +6 Standard Deviation Line. During the 50% correction wave, the $TRIN took a nose dive into bullish territory.
In the above three charts, I have superimposed the Stochastic for the Financial Spider (White Line) and the Stochastic for the combined 8 SPDR Sectors (Red/Green Line). Notice how the market is bearish when the Financial Stochastic is below the 8 Sector Stochastic, and bullish when it is above. An interesting observation for the indicated days anyway!
Charles
No comments:
Post a Comment