MDA - Market Direction Analysis

[Namiar]

Hi Augie,

Haven't yet checked, but I may have have a first rung buy on my scalp model today. Will run the numbers a little before close to verify.

Your internals data saying that your model is currently in "buy" territory, for that matter it never seems to have left that zone. I have also noticed a general weakness in the internals ratios during this last move up. I can surmise a couple of divergent options:

1) We still have some big moves in front of us. As of late, my model would achieve key overbought thresholds before the markets would commence a selloff. Thus far I have not seen those levels of overbought, although Monday was close.

2) Markets are starting to roll over. Weaker internals in the face of large upmoves means that selling/shorting thresholds need to be lowered. This would imply that Monday overbought level was "good enough" to trigger a selloff.

I would tend to favor option #1 at this point - I think we will see another big move up before a big move down. Although my personal bottom line prefers a down move so that I can enter another high probability scalp trade.