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Wednesday, May 13, 2009

E - mini Hourly Chart

What this chart shows is that the up channel (all hours) has been broken under of course. But what really grabs my eye is the bottom graph where I have a combined MACD and Stochs. You can see that these all near the "floor". They of course can "embed" and stay low. I find when this happened though during this P2, the market rallied. The key thing is these indicators can work themselves off the floor and if there is no volume buying and lots of selling the "price" will not go very high. So they "reset" higher yet the price stays under any previous highs. Then another bear leg occurs. This is how P1 of course played out.
The e-mini daily is another story though. The MACD and stochs on that are very high.

1 comment:

  1. As you may have noted, I gave up several weeks ago (after April 20th fakeout) and began trading on the 60m indicators. Why is it possibly different this time? The indicators have finally violated the long running trendlines that had been supporting them IMO. The 60m dove deeper this time and when they tried to pop they failed for the first time in a month. This combined with the dailys topping out and getting some reliable sell signals and even the weeklys getting toppy (very reliable STO bear cross) tell me it will be different this time. Alas, who knows in this manipulated market. It will go wherever they want it to.