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I agree Harley - I just finished updating my site for tonight and
things continue to look "toppy". I think the Dow could easily correct
down to 8200 - if it goes lower, could be interesting. The NYSE
market internals also look weak, but the NASDAQ A-D line looks much
weaker. Everyone can check out the brand new
http://coolhistory.com/ChipsCharts and see for themselves.
Possible bright spots include the Small Caps which have shown strength
recently and the Consumer Cyclical sector.
Chip
Wireless in Seattle
---Harley Meyer <meyer@xxxxxxxxxxx> wrote:
>
> After looking at the charts tonight I believe we will begin to move
into
> the DJIA's first correction in some time. I originally thought the
> indexes had to move higher before they would correct. i.e., move much
> higher than the August highs, so the correction would stay above old
> highs. Part of my reasoning behind why I had originally thought that
> was. That of investor perception of the market. If the US and Iraq
were
> going to battle, then there was this feeling that the market movers
and
> shakers didn't want to worry the general public too much. As well as
> complicate matters by creating a technically sloppy chart. If the US /
> Iraq problems are being resolved in some manner other than gunpowder.
> They can now take their profits and deal with the sloppy charts.
Anyway
> these were some of the things that went into my earlier thinking.
>
> After looking at NYSE breadth I can see the DJIA now pulling back.
> I am looking at the same ole things:
> New highs minus new lows after moving sideways is beginning to move
> lower.
> Total volume had been drifting lower but is now moving up on a down
day.
>
> Up/Down volume ratio - the momentum is slowing as measured by its 50
day
> and 10 day MAs. (The general rule of thumb is that if the ratio is
above
> 2 on any given day the market will be up, below 1 the market will be
> down, and between 1 and 2 the market will not make any significant
move
> during the day.)
> Of course the final confirmation is the break in the up trend channel.
>
> Harley
>
>
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