MidDay Review 05/15/09

Interesting lunch time tumble. Energy was the first to show weakness, then followed by the Financials. When these two are Red, I refuse to be long. Once the Advance - Decline Line and Discretionary Stocks turned Red, and the market dipped below the 0930 ET open, buying support disappeared.

Charles

First Hour Review 05/15/09

In the first hour, the indicators were mixed. Financials and Energy were bearish, while Discretionary Stocks, VIX and Advance - Decline Line were neutral at best. At the 1030 ET bell, all indicators turned Green.

After the 1030 ET bell, the market, being above both the 0930 ET Open and VWAP, tested a recent pivot low and then bounced to the upside with everything giving a Green signal.

Charles

End of Day Charts 05/14/09

Charles

Morning Review 05/14/09

The Financial Sector turned Green after 1000 ET along with the Advance - Decline Line. This is a bullish indication.

The market found support at the 0930 ET Open Price following the up wave created after the test of yesterday's low. That mid-morning correction was also 62% of the up Swing Wave. The market then completed an Impulse Wave almost the same magnitude as the Swing Wave.

$TICK has been in an uptrend most of the morning.

Charles

PreMarket Observations 05/14/09

The market is still above the 872 support zone.



Even though the market is now below the yearly open, it is still above the monthly open, which often acts as support or resistance.



Perhaps we will see a close above the 0930 ET open today.

Charles

End of Day Review 05/13/09

The VIX turned Red for the last time at 1230 ET with other indicators such as the Financials and Energy turning Red soon after.

At the same time, the market was testing the VWAP line as bearish momentum increased throughout the early afternoon with the market remaining below the VWAP for the rest of the day.

Charles

Morning Review 05/13/09

The market gapped lower this morning. At 1015 ET, the VIX, Financials, Energy and Discretionary Stocks turned Green increasing the probability that the market would correct back to the Pivot Line.

The market didn't quite make it to the Pivot Line, but came close. After 1015 ET, $TICK momentume was also Green. On this 1 minute chart, I included 1 Standard Deviation Bands around the 38-Period EMA of the $TICK Close. While the 20-Period EMA was above the 38-Period EMA, corrections to the lower band was a good place to go long. After the market traded back below the VWAP and $TICK momentum was back in the Red, a good place to go short was a correction to the upper band.

Charles