TRADING DP

[TREND1]

3/27 Ultra-Short-Term Indicators: No climactic readings on the CVI and Participation Index. These two indicators will be discontinued next week, but the Net advances-declines will serve us well on identifying climactic activity. Note that the last CVI/Participation Index - DOWN spike was replicated quite nicely by the net A-D and net A-D volume. The VIX broke well-below the bottom Bollinger Band. I suspect today's rally was a good response, but we may see a follow-on bounce out of it.


Short-Term Indicators: These indicators have turned up in oversold territory. This is very encouraging. We saw a nice short-term rally after the last bottom on the Swenlin Trading Oscillators.

Conclusion: Looking at the indicators, we could see a bit of rally off the bottom of the declining trend channel, but I believe that declining channel will hold up based on the bearish intermediate-term indicators.