Monday, March 06, 2017 3:56:35 PM
Short-Term Bottom,
Long-legged candles after a few day’s selloff tend to indicate bottoms. The upper chart won’t show today's long lower shadow because of pixelation, but it’s there. It will show up in the second chart down because it is a detrended version of the upper chart. The long leg still needs to be there at market close for it to count. I’ll assume it will meet that requirement because it’s been sticky all day.
Note that for the last three weeks, both NHNL() and Apollo have been trending down while $SPX was trending higher. That is divergence and foretells a correction because a decreasing number of stocks were contributing to a rising market. That selloff just happened over the last few days.
I don’t know if a 3-day correction indicates a long enough selloff. But I think it does in this case because Apollo, at the bottom of the four charts below, is near an extreme low (below -70), where reversals happen. But it doesn’t say how long reversals last.
Whatever – I’m going to go look for something to buy.
Within the upper chart, vertical green or red lines mean buy or sell.
Long-legged candles after a few day’s selloff tend to indicate bottoms. The upper chart won’t show today's long lower shadow because of pixelation, but it’s there. It will show up in the second chart down because it is a detrended version of the upper chart. The long leg still needs to be there at market close for it to count. I’ll assume it will meet that requirement because it’s been sticky all day.
Note that for the last three weeks, both NHNL() and Apollo have been trending down while $SPX was trending higher. That is divergence and foretells a correction because a decreasing number of stocks were contributing to a rising market. That selloff just happened over the last few days.
I don’t know if a 3-day correction indicates a long enough selloff. But I think it does in this case because Apollo, at the bottom of the four charts below, is near an extreme low (below -70), where reversals happen. But it doesn’t say how long reversals last.
Whatever – I’m going to go look for something to buy.
Within the upper chart, vertical green or red lines mean buy or sell.
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