Wednesday, April 24, 2013

dWbShadowTrader Quad

The Value Area once again played a very prominent role in today's trading. The market's action today was very predictable, coiling in a descending triangle into the POC. The breakout in price occurred as the Advance/Decline Breadth and Up/Down Volume gained support of their respective Double Moving Averages. The High of the Day was guarded closely by the bears and price returned to the POC at the close. Cumulative Tick remained around zero throughout the day, and the A/D ratio started positive on both the NYSE and NASD, but did go negative on the NASD several times on price retracements to the POC. It will be very telling if the market is not able to sustain buyers at the POC overnight and into tomorrow's open. We may see a sizable decline if there is a breakdown here as the market is very close to being at overbought levels. This was confirmed by ShadowTrader's Sector Trend Scores prior to today's trading.