Professor’s Comments March 29, 2016
Posted by OMS at March 29th, 2016
Stocks were mixed again yesterday on low post Holiday volume. The Dow finished up 20 points, closing at 17,535. The NASDAQ was off 7 points. Volume on the NYSE was only 75 percent of its 10-day average. There were 108 new highs and 11 new lows.
Buying pressure has all but dried up on the major exchanges, but the selling has still not started. It still appears that the institutions are bidding a few stocks up so they can continue to dump others. We saw this in the final minutes of yesterday’s trading as a few large cap stocks were bought to keep the Dow from having a losing day.
Yesterday’s action cause most of my money flow indicators to weaken significantly, but they have not turned negative yet. So we wait.
Same for The Tide. It’s still neutral, with two of the four breadth indicators being negative. The thing to note about the breadth now is that the two indicators that have turned negative are also the most important. That’s because whenever the A-D Oscillator and the Summation Index are negative, it tells me that most stocks on the NYSE have started to enter down trends.
For the past three days, the A-D oscillator has also had readings that are very close to producing a small change signal. So if the market does start to move lower, it could result in a Big Move. This Big Move could be the impulsive wave that I’m looking for to start Major Wave 3 down.
Waiting.
That’s what I’m doing,
h
Market Signals for
03-29-2016
| DMI (DIA) | POS |
| DMI (QQQ) | POS |
| COACH (DIA) | POS |
| COACH (QQQ) | POS |
| A/D OSC | |
| DEANs LIST | POS |
| THE TIDE | NEU |
| SUM IND | NEG |
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