ThinkorSwim TA and More

[desertcynlite]

Great post Koondog! Very well said. Right now the daily charts rule the game and they are going down. The intraday are giving us opportunities to make a little extra on the swings. The weekly charts are interesting and should be watched too right now IMO. (DC...the longer term charts have more influence on direction...that is why we keep backing out to the longer time frames.) The Nasdaq is below the 50 EMA and 100 EMA. It's not recommended you buy a stock when it is below these so, having the weekly Index's chart below them doesn't bode well for the market. Of course, there could be a bounce where the market goes back and retests them. It has happened twice before. But, looking at historical bear trends, twice is usually it and then it drops to the next level down. (I could be wrong on how I'm reading the charts ... it has happened before :) but, I'm trading with this in mind.) I'm waiting to see if the RSI on the weekly Indexes drops below 30. It could cause another slide. Otherwise, if they hold, the market may bounce again.

While I like to watch the indexes, primarily the Nasdaq, I find VIX to be am easy read of the market. When the RSI 7 level gets really toppy, the market goes up. When the RSI 7 gets back to 50 (i.e. the reset point)...it heads back down. As long as it stays above 50, the trend is down. It's an easy gage to watch.

Right now, the 60 minute charts are trying to turn bearish again. So far, they are still in the bulls court but, if they turn today then that will start more pressure to the downside. My eyes are definitely on them looking for another opportunity to short.

I definitely know what it is like to be on the wrong side of the trend and feel convinced it's going to change. So far, we have folks reading the charts both directions. I think we will see soon.

Cyn ~