Professor’s Comments March 24, 2015
Posted by OMS at March 24th, 2015
The Dow was up over 50 points for most of the day, but weakened late to close down 11 points at 18,116. Volume was moderate, coming in at 91 percent of its 10-day average. There were 248 new highs and 20 new lows.
There was a small change in the A-D oscillator so we need to be on the lookout for a Big Move within the next 1-2 days.
Not much changed with yesterday’s trading. It still appears that the market is completing a wave 2 correction. If prices continue to rise and exceed the early March highs, then I’ll have to go with a different scenario, probably some type of wedge pattern. But for now, I’m still going with the wave 2.
All I’m doing now is waiting for the indicators to turn negative. So far, the only one to turn is the Coach on the QQQ. It’s telling me that money is now leaving the NASDAQ. The ‘Island Top’ that I talked about in my WSR continues to form. What the pattern needs now is a good down day to complete the reversal process. This could happen within the next day or so with the small change signal from the A-D oscillator on the Board.
The overall market continues to be in a very dangerous place. However, while I still believe that a major decline is coming, it’s still possible that the markets could chop around and trade slightly higher before the actual decline starts. With most of the indicators and Lists still positive, I believe that it’s too late to buy into this market, but too early to start shorting.
That’s why I’m mostly watching at this point and waiting for the indicators to turn negative.
That’s what I’m doing,
h
Market Signals for 03-24-2015 |
|
---|---|
DMI (DIA) | POS |
DMI (QQQ) | POS |
COACH (DIA) | POS |
COACH (QQQ) | NEG |
A/D OSC | SM CHG |
DEANs LIST | POS |
THE TIDE | POS |
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
FAQ
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Category: Professor's Comments