This looks like a bonafide "W" bottom, the only problem, the SPY and Dow haven't confirmed and remain locked in primary downtrends. Here's a look at some charts, you decide.
Here's a daily scan I use of price to volume relationships. The most negative in any market is price up/volume down. It's not a huge margin on the Q's, but it is dominant. It's actually underperforming the other major averages.
<a href="http://www.flickr.com/photos/23623637@N05/3478307234/" title="Picture 17 by BT24_7, on Flickr"><img src="http://farm4.static.flickr.com/3614/3478307234_22394bce1d.jpg" width="500" height="400" alt="Picture 17" /></a>
Here's the "W" Bottom. "A, B and D" are all negative divercences, "C" is a positive, but just like I'm seeing in all the other major averages, the recent rally highs have been used as an opportunity to sell into the rally. Draw your own concussions.
<a href="http://www.flickr.com/photos/23623637@N05/3477499465/" title="Picture 15 by BT24_7, on Flickr"><img src="http://farm4.static.flickr.com/3309/3477499465_648526debb.jpg" width="500" height="313" alt="Picture 15" /></a>
Finally my 3C indicator on a 1-min chart, not really that important in the big picture unless it is being used to time an exact divergent reversal and pont "A" is a negative divergence. Rememer, the pros trade the close. I've een expecting the typical false breakout, here above $34.25. If that hapen and we see good volume and then a reversal back under what will become support, watch out below-typically waterfall type sell offs.
All in all, this has been a decent trading rally, but not enough to overcome the primary trend, decent though. I feel the worm is about to turn, false breakout or not.
<a href="http://www.flickr.com/photos/23623637@N05/3477499655/" title="Picture 16 by BT24_7, on Flickr"><img src="http://farm4.static.flickr.com/3607/3477499655_b88a6a7511.jpg" width="500" height="313" alt="Picture 16" /></a>
Here's a daily scan I use of price to volume relationships. The most negative in any market is price up/volume down. It's not a huge margin on the Q's, but it is dominant. It's actually underperforming the other major averages.
<a href="http://www.flickr.com/photos/23623637@N05/3478307234/" title="Picture 17 by BT24_7, on Flickr"><img src="http://farm4.static.flickr.com/3614/3478307234_22394bce1d.jpg" width="500" height="400" alt="Picture 17" /></a>
Here's the "W" Bottom. "A, B and D" are all negative divercences, "C" is a positive, but just like I'm seeing in all the other major averages, the recent rally highs have been used as an opportunity to sell into the rally. Draw your own concussions.
<a href="http://www.flickr.com/photos/23623637@N05/3477499465/" title="Picture 15 by BT24_7, on Flickr"><img src="http://farm4.static.flickr.com/3309/3477499465_648526debb.jpg" width="500" height="313" alt="Picture 15" /></a>
Finally my 3C indicator on a 1-min chart, not really that important in the big picture unless it is being used to time an exact divergent reversal and pont "A" is a negative divergence. Rememer, the pros trade the close. I've een expecting the typical false breakout, here above $34.25. If that hapen and we see good volume and then a reversal back under what will become support, watch out below-typically waterfall type sell offs.
All in all, this has been a decent trading rally, but not enough to overcome the primary trend, decent though. I feel the worm is about to turn, false breakout or not.
<a href="http://www.flickr.com/photos/23623637@N05/3477499655/" title="Picture 16 by BT24_7, on Flickr"><img src="http://farm4.static.flickr.com/3607/3477499655_b88a6a7511.jpg" width="500" height="313" alt="Picture 16" /></a>
