Wednesday, May 8, 2013
Advance/Decline Breadth opened the day on Wall Street split, with a negative bias on the NASDAQ. Up/Down Volume Ratio began the day slightly negative, but quickly righted the ship and rose throughout the afternoon. Cumulative $TICK spent more time positive than negative. S&P 500 Futures opened inside of yesterday's Value Area; well above, the five day Value Area; marginally, above yesterday's TPO profile. As noted in the screencast on the YouTube channel, the Future's have made it a habit this week of catching the bid of the 60 SMA & 110 EMA. Today, was no different; in fact, once the 'hook was set, price accererated to new highs even after the close on Wall Street. We did certainly see divergence, as the new Highs were set on decidedly lower volume, and lower Double Stochastic and Ergodic Oscillator levels. The S&P Futures are clearly overbought after today's auction, and despite conventional knowledge that no market goes straight up with digesting gains at some point, the Futures continue higher. The Monkey Bars Volume Profile and Time-Price Opportunity Profile continue to point to inverted 'p's, indicative of bad fill prices for bulls, but they have yet to be taken advantage of by the bears. Once the trap is set, a consirable liquidation should trigger short. I am staying off of my laurels, ready to attack. I am totally out of any longs, waiting for a short entry any morning to act on. Today I was able to lock in some profits on an hourly trade from the lunchtime highs retracement leading up to the close on Wall Street.