The character of the market is changing, evident by these three charts below. In the NASDAQ chart you’ll see that this is the first time in quite a while the red candle was completely below the middle keltner channel line. The -d1 line on the ADX has spiked and when the actuall ADX line is starting from under 20 value, and there’s a big spike in either the +d1 or -d1 it pays to watch this indicator for follow through.
I opened half positions in the following (QQQQ, DIA, SPY) after the close, despite the oversold nature of the markets. I’ll complete my positions on intraday moves higher. Today’s move on the Nasdaq wipes out all of February’s gains and should’t be taken lightly.
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Stair step decline with this indicator setting new lows, showing that the internals are getting weaker. We still have a lot of roon to drop here.
This time it is different.The VIX has broken out of a long trend and if you’ve been following my blog for awhile you’ll know that I’ve been expecting a big drop in the overall markets ever since we entered the blue territory on this chart. Every other preceding moment has seen the markets weaken significantly and my theory is that POMO was delaying the obvious.
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