I hate to be a party pooper but today’s rally really does nothing for me. Normally, a “turnaround Tuesday” would have had a little more downside this morning and then a turn and built up to the kind of close we had. So, what was missing?
Well, to begin with we started up, and came back down and tested yesterdays close, so far so good. We rallied to new highs of the day, still good. Then we went dead for the last 3 ½ hours and the adv/dec and volume declined. At the close the market was overbought and the a/d was barely 1.3:1 and volume the same. Okay, it’s not bearish unless you have an investment timeframe that’s more than the rest of this week. So far I’m seeing a break from the consolidation after the run up from Brexit. The break down 9/7, a consolidation and rally right back to the break on 9/22 @ 18,500. It’s going to take a close over 18.570 for me to consider a successful test of the 18,000 breakout.
I’m going to let the FB put trade go to the 50% Down Rule since I still see the chart as a bear flag, and the GLD call order from today is good for the rest of the week…CAM
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