*~1Best~* Market Timing & Trend-Signals

[*~1Best~*]

Markets are trading at resistances -- SPX 1485 +/-, DOW 12950 +/-, Nasdaq 2532 +/-, and Qs 45.60 +/- upper resistances as shown on the charts.


The positive divergence on money flow which alerted is working out as we see that DOW is now approaching DOW 13000.

Volume will be taping off after the morning spike with gap open. Money flow is showing positive divergences as alerted a week ago.

Breadth is breaking out of down trendline.

We have SMH and $TRANS are also at breakout resistances with intraday higher/high print outs; therefore, sustained move is certainly is positive even though markets are resistances at the moment.


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http://www.traders-talk.com/mb2/index.php?showtopic=69204

DOW Breakout with Positive Divergence in money flow

4/18/2007 11:17:38 AM
DOW is approaching higher/high HOD heading to 12795.93 on 9/20.

$SOX/SMH positive price action is certainly helping and, breaking above the trading range, will confirm the recent market breakout.

http://www.investorshub.com/boards/read_ms...age_id=18890136

http://www.traders-talk.com/mb2/index.php?showtopic=69052


Money Flow positive divergence with higher/high price actions with markets breaking out.
http://www.investorshub.com/boards/read_ms...age_id=18750334

Risky business to bet against "Breaking out" unless we have evidences showing a failure of "Breakout". So far, price actions are progressively confirming "Breakout Retest" scenario which I commented.

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SPX traded higher/ high to 1453.11, breaking above the recent trading range, 1448.73, 4/10 and above rising wedge formation on VST 4wk price actions with the 1429.22 low on 3/30.

DOW traded higher/high to 12615.38 breaking above 12593.60 with the 12242.60 low on 3/30. Nasdaq traded higher/high to 2491.94 near to 2500 resistance. OEX also traded above the recent up trend line making new high to 665.57.NYA traded higher/high to 9522.38 at all time high breaking out of the 2/20 high of 9458.47; as commented before, NYA is leading other major markets.
However, Qs traded to 44.72 which is below the resistance of 44.75 on 4/9 showing slightly weaker price actions that other major markets and indices due to AAPL trading down for the day.

For SPX, Dow and OEX, Money flow on daily shows positive divergence breaking above the Feb 07 high. This can also be seen through MACD actions showing positive divergence comparing to the Feb 07 price actions. Therefore, internal price action continued to show positive price action confirming the anticipation of higher price actions breaking above the Feb 2007 high progressively confirming the “Breakout Retest” scenario which I commented since the March double bottom.

Market breadth is continuing to improve even though it is not as strong sending mixed signals with negative divergences; however, as noted before, we will see narrowing breadth at this stage of market and economic cycles. For example, $NASI daily is continuing to improve after reversing from the breakout support, as noted a couple of weeks ago, which is confirming the “Breakout Support” market action which I commented. Based on the $NASI internal strength as we can see on MACD staying above the zero, with the continued strength staying above the zeroline, Nasdaq internal is positive confirming the price action even if it is not as strong as the one which we have seen during 2003.

Market volume during the last week was relatively moderate going into earning season. I am anticipating higher volume tradings during the earning season and going into OE week. Major market ETFs shorting activities shown on volume is not significant.

In summary, I am anticipating SPX to retest SPX 1461, the Feb 2007 high, and will show a breakout number before it pulls back. I will reassess market strength during the OE week.