Professor’s Comments November 12, 2015
Posted by OMS at November 12th, 2015
The Dow fell 56 points, closing at 17,702. Volume was moderate, coming in at 92 percent of its 10-day average. There were 61 new highs and 118 new lows.
As I mentioned late yesterday, the thing to watch today will be the 176.75 level on the Dow Diamonds (DIA). If this key support level is broken, it should start a decline of about 200 points. And IF this happens, it will likely be enough to turn the Dean’s List and the Money Flow indicators negative.
The attached 60 min chart shows the Head & Shoulders (H&S) Pattern. The H&S is a classic topping pattern. And because the pattern has developed immediately after a downside breakout from an Ending Diagonal Pattern, we need to pay attention.
The Tide remains negative, but all of the positive index ETFs are still on the Dean’s List. So IF the Dow starts to break down, look for the INVERSE index ETFs to start appearing on the List.
Remember, the Dow DIA) has several downside targets now. The first is the 174.75 level from the H&S pattern. But the larger target from the Ending Diagonal Pattern is at the 160 level where the pattern began. So a break of 176.75 could start things rolling down hill. We’ll see.
There was a ‘relatively’ small change in the A-D oscillator last night. The 11 point change was above the 10 point limit that I use to turn the cockpit light green. However it was close enough that we need to be on the lookout for a Big Move within the next 1-2 days. In other words, the A-D oscillator is also suggesting the Dow will see a Big Move if 176.75 is broken.
Watching the 176.75 level on the DIA.
That’s what I’m doing,
h
Market Signals for
11-12-2015
DMI (DIA) | POS |
DMI (QQQ) | POS |
COACH (DIA) | POS |
COACH (QQQ) | POS |
A/D OSC | |
DEANs LIST | POS |
THE TIDE | NEG |
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