Direxion 3X Russell Funds (TNA)

[dalcindo]

ECM - Direxion's Bulls, $VIX and $SPX, $COMPQ, $INDU, $RUT:

Hi, 3xBuba!

I should have posted this one last friday at the week's close to point out to a potential MAX Expansion event in this Expansion/Contraction Model (ECM), indicative of wide market contraction and price decline going forward. Still, here is the chart of Direxion's Bulls, broad indices and .

Superimposition of all three markets against price and MACD has provided me with some pretty reliable signals as the market nears or is in instance of completing a reversal.

Here, all Direxion's Bulls ETFs are expressed in relative strength against $SPX as a way to "remove" that background and emphasize that specific market segment.

Note also that as a whole, $SPX has weakened and since its decline, it has validated a channel that may or may not provide further directional guidance.

Finally, MACD is underlining that reversal with its own line cross-over and histogram zero-crossing signals. Its support trendline lacks validation for now, but it may be the target for this expected down-trend, if it continues.

See other charts below for broad market indices, $VIX crossing over its 50-EMA today for the first time since FEBRUARY 2009; and validation of $COMPQ's bearish channel:

$SPX : Direxion ETFs Relative Strength Chart:




$VIX And Synopsis of Major Indices (S&P, Nasdaq, DJIA) Chart:




$VIX And Synopsis of Major Indices (S&P 500, NYSE, Russell 2000) Chart:



$COMPQ - 36-Mo., Daily Chart:


- Dalcindo