Tuesday, August 4, 2009

End of Day Review 08/04/09

Today and yesterday, the market has made a small P formation on the Volume Distribution chart, which is slightly bearish. However, the market keeps closing above the volume bulge. Note sure how much longer the market will go before correcting, at least, a little.

The market did not give us any obvious divergences to signal a top mid-day. We did get a Head and Shoulders formation. You could have made the argument that today was probably going to be a narrow range day, rather than a wide range, trend day, which indicates that the market will trade back to value identified by the VWAP Line. It is always easy to make that argument after the fact.

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