Thursday, October 23, 2008

Pre-market 10/23/08



5:30pm: Hey, the blogger is working, it's been AOL. Anyway, we went up, went went DOWN, broke the lower trend line, and then did some thing we haven't done in a while, and rallied the last hour into the close, hmmmm. The daily candle's look pretty good, actually the Q's are cool, they actually broke the previous lows of the year before rallying in to the close, both of the dailies left long legged doji type candle thingey's, in the after hours we were up for a while after the Mikey report, however currently they are all down a little.
The "triangle" is getting narrower and narrower, some thing's gonna happen, maybe tomorrow.


5:45am: Futures, IE the ES, are down about 2% as I write, oops, 2.08%, wad ever.

I'm looking at the percentage of stocks in the S&P 500 above their 10 day moving average, from http://www.indexindicators.com/ . You can use what ever MA you want, 5, 20 etc etc. The point is, at least to ME, when you look at the prior three temporary bottoms the last year, the number of stocks above the MA reach's their low zenith prior to the bottom, IE they dump them and the momentum carries the index into the depths of hell. What then happens, is that the percentage of stocks above their MA starts to rise, in each case BEFORE the index reached the bottom, in this case January, March and July.
Now, this time, we reached the low on the same day as the index reached it's low, two friday's ago. We then had a big jump in the number of stocks above the 10MA even as the index retreated back down the last week, so all this is saying, is that there is a chance that momentum is beginning to shift. It dosn't mean we won't make new lows on the index, but I will be watching to see if the lows on the stocks above their 10MA continues to diverge against the index. He's alway late with his data, this is from tuesday, so we probably had a big drop yesterday.

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