$TRAN finished positive with positive divergences on daily and weekly. As shown on the $TRAN and DOW ratio chart, TRAN is now leading with the formation which is similar as in 1990 and 1997 as the ratio bounced off from the LT support. $TRAN led markets and now it is showing leading to upside also with positive divergence on the ratio chart.
While SPX/DOW remained in a tight range during the last 4 days, Qs/NDX moved up for 3 days in a formation which is not so bullish looking - a mix of bearish deliberation and three white soldiers.
While it is now no-brain to be bearish as many already decided that we are in bear market, markets are showing positive divergences at oversold levels and with bearish sentiment.
Market action on 1/23/08 was climactic with high volume and so far market is trading above the key level which is a good sign for further upside price actions. However, intraday actions were not as strong as I would like to see, so price actions during the OE are important as SPX/DOW moves out of the tight range.
Big caps are again leading.
No comments:
Post a Comment