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Friday, November 07, 2008 8:58:20 AM
Market Continues To Trade Within Chop Zone
November 7, 2008 by day_trader
"It has been a while since my last post. You can see that the market is chopping up and down with no real conviction either way. Volume has been very light as of late. The S&P attempted to break out but it turned out to be a false breakout within a larger range. 1000 on the SPY was a gap from earlier in October and that was filled perfectly before turning lower. Earlier this week, the NYSE McClellan Oscillator hit an all time high, indicating breadth exhaustion to the upside and the pullback came in shortly after that. While the volatility continues to remain high, we are trading within a range and until this range is broken though decisively, the choppy action will continue.
I am still betting that the market will eventually break out through the top of this range. Volume patterns are still bullish. Of the last three pushes down, this push down is showing the least amount of energy. The SPY could be in the process of forming a triple bottom."
George.
Click on "In reply to", to see any past commentary.
November 7, 2008 by day_trader
"It has been a while since my last post. You can see that the market is chopping up and down with no real conviction either way. Volume has been very light as of late. The S&P attempted to break out but it turned out to be a false breakout within a larger range. 1000 on the SPY was a gap from earlier in October and that was filled perfectly before turning lower. Earlier this week, the NYSE McClellan Oscillator hit an all time high, indicating breadth exhaustion to the upside and the pullback came in shortly after that. While the volatility continues to remain high, we are trading within a range and until this range is broken though decisively, the choppy action will continue.
I am still betting that the market will eventually break out through the top of this range. Volume patterns are still bullish. Of the last three pushes down, this push down is showing the least amount of energy. The SPY could be in the process of forming a triple bottom."
George.
Click on "In reply to", to see any past commentary.
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