|
PureBytes Links
Trading Reference Links
|
I noticed a very interesting thing today:
Yesterday Nasdaq close formed a very rare pattern, well documented in Steve Nison "Beyond Candlesticks" book:
A "Last Engulfing Bearish". When you have a strong engulfing bearish, not a top, but at the end of a long bear trend, which is obviously the case here, this very often leads to a major trend reversal, especially when the engulfing body is large, which was also the case yesterday (7% drop in one session).
Also, there is clearly on the charts a huge convergence between the down trend and the volumes since mid-january (prices dropping, and volume dropping also), which is the opposite of what took place BEFORE january. This illustrates a weakening down trend. Note also the huge divergence between the MACD and the last bottoms.
Could be the bottom, although Elliott waves analysis indicates further drop down to 1500-1640 area.
Carl
------------------------ Yahoo! Groups Sponsor ---------------------~-~>
Make good on the promise you made at graduation to keep
in touch. Classmates.com has over 14 million registered
high school alumni--chances are you'll find your friends!
http://us.click.yahoo.com/n4HqaC/DMUCAA/4ihDAA/zf_UlB/TM
---------------------------------------------------------------------_->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
Attachment:
Description: "chart.gif"
|