Wednesday, October 21, 2009
When breakouts fail
Here' s chart of the Nasdaq with Climax Highs indicated in red and Follow-Through signals in magenta.
Notice how it punched up to a marginal new high on the 14th, but didn't really go any further. The preceding rally occurred on light volume, as can be seen by the volume bars relative to the 17-day XMA (shown in green), and breadth indicators showed it lacking in supportive numbers of Climax Low signals, Up on Big Volume, etc.
Now the volume is picking up to the downside. Note the Climax High signals on Tuesday and Wednesday. A cycle through my charts of market indexes and EFTs shows them to be in similar shape.
Notice how it punched up to a marginal new high on the 14th, but didn't really go any further. The preceding rally occurred on light volume, as can be seen by the volume bars relative to the 17-day XMA (shown in green), and breadth indicators showed it lacking in supportive numbers of Climax Low signals, Up on Big Volume, etc.
Now the volume is picking up to the downside. Note the Climax High signals on Tuesday and Wednesday. A cycle through my charts of market indexes and EFTs shows them to be in similar shape.
// posted by gigascanner @ 6:17 AM 
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