Nothing lengthy tonight because anything can happen tomorrow and it’s not worth putting the time in. But one chart I wanted to share with you that I’ve been watching and have mentioned I would inform you when we got a signal is the NASI (Nasdaq Summation Index). I’ve applied the 3line break pattern and it actually went negative yesterday, but I was waiting to see if today’s move would negate yesterdays move. Note the big drop in the RSI as well.
This red candlestick could be significant because we’ve had 33 bullish candlesticks prior to it and that is a lot when comparing previous bullish upmoves. We may have some negative divergence action before we drop for good, and I’m watching my primary market timing signal to see if they turn at the same time.
The odd thing is with today’s up move my market timing signal expanded it’s bullishness and the gap has widened. Strange action indeed and I don’t mind being on the sidelines.
