Thursday, December 18, 2008

Morning Observations 12/18/08

Following the 1000 ET reports, the market advanced and then corrected 62%. At the bottom of the 62% correction, the market tested that low twice with an advancing $TICK. The upward advance after that was slow compared to the activity that we have seen in the last several months, but more typical of how the market normally moves.

The market lately has been waiting until after 1100 ET to reverse into the European closings. At 1106 ET we finally got a good bearish $TICK divergence. After the European close, we then got a lunchtime bullish $TICK divergence.
So far, we have an inside day and another narrow range morning. The $TICK moving averages on the 5-Minute chart remains above zero showing a tendency toward buying rather than selling. We were due for a two day correction, and the correction thus far is mild.

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