Inside day in SP500 Thursday ?

[Walther]

Based on a strong divergence at the end of today, I think that selling everything over 60 looks like a good idea right now, I expect down day tomorrow. We might have to wait for a Friday though .
Walter

 

[himself]

Quote from Walther:

Based on a strong divergence at the end of today
Walter

Please explain further, divergence between [or among] what things?
Perhaps a graph of that [those] divergences would be helpful?
Thank you.

 

[waggie945]

Hey Walter,

At first the AMAT results didn't really do much to the futures, but now they are up about 2 points from the Chicago close.

I must admit, I kind of agree with ya.
The weekly pivot is 1050.60, so we will have to see what happens if today's move fails tomorrow, as you expect.

 

[Walther]

Quote from himself:



Please explain further, divergence between [or among] what things?
Perhaps a graph of that [those] divergences would be helpful?
Thank you.

I use 5 min chart, 8-2 stochastics and 13period CCI. You can see divergence between price and indicator(s) If both indicators form divergence, or convergence with price, I consider it better signal then confirmation with just one indicator.
Walter

 

[Walther]

Quote from waggie945:

Hey Walter,

At first the AMAT results didn't really do much to the futures, but now they are up about 2 points from the Chicago close.

I must admit, I kind of agree with ya.
The weekly pivot is 1050.60, so we will have to see what happens if today's move fails tomorrow, as you expect.

Agreeing with me on intraday analysis is a good thing..lol
In a theory , forming triple top should signal reversal. If we got some good news reversal might take longer then this week to come to fruition .
Walter

 

[CharlesTrader]

I like your technical analysis Walter, and agree with your interpretation. If today is not an inside trading day, it will probably be, at least, a narrow range day. In the longer view, the market may be setting itself up for a correction.

I usually do not pay attention to analyst, but it is interesting to note that Michael Belkin is predicting a major correction soon:

http://moneycentral.msn.com/content/P62345.asp

I also read that Mark Cook's Tick Indicator was predicting in early October that a correction is coming. His indicator is usually a month or two ahead of the game.

Combining these with the fact that most of the field is expecting a continuing strong market may make a correction highly possible.

Charles

 

[Walther]

Quote from himself:



Please explain further, divergence between [or among] what things?
Perhaps a graph of that [those] divergences would be helpful?
Thank you.

I did explained this in my previous post by it disapeared.
Divergence is between price and 8-2 stochastics and or 13 period CCI.
Walter

 

[Walther]

Quote from CharlesTrader:

II also read that Mark Cook's Tick Indicator was predicting in early October that a correction is coming. His indicator is usually a month or two ahead of the game.

Combining these with the fact that most of the field is expecting a continuing strong market may make a correction highly possible.

Charles

Thanks,
I always thought that his Tick indicator is a short term tool. I guess I will have to look at it again.
I have noticed that if there is a strong divergence between price and momentum indicator at a end of a day that next day majority of a price action is in direction of a divergence. I use it for Bonds and now I want to see if it will work for indexes and stocks.
Walter

 

[inandlong]

I think it is important to remember that a correction can occur by time and not just points.

 

[CharlesTrader]

I'm not extremely knowledgable concerning the Mark Cook Cumulative indicator; however, I just read a recent interview where he stated that the highest reading that he ever had was in December of 1999 and the market started going south in March of 2000. He stated that in early October of this year, the indicator has given a similar high reading of December 1999.

Charles