As I was scanning over some of my secondary indicators I noticed a pattern within the ADX indicator on the Nasdaq Advance/Decline that we’ve seen before and I feel is worth paying attention to. I suspect when the coiling that is going on with the +DI & -DI resolves itself, we’ll see an end to the day to day volatility that is frustrating many swing traders right now.
The RSI is also tightening up, after an orderly stair-step decline. First it lived above the 70 range during the first part of the year. From mid jan-mid feb it lived inside the 50-70 range, and now it seems to be hanging out below h the 50 range (traditionally a bearish area).
If the internals don’t improve soon it’s not rocket science to predict the Nasdaq will follow suit.
