Monday, February 11, 2008

Monday: Price up, volume down

Interesting little study today by Rob Hanna on recent market behavior following inside days. Hint: it's bearish.
With 3 up days now in the Qs, we may be setting up for a little retracement. Typically, Monday and Wedesday are the most profitable days to sell the Qs after short term run ups, with Wednesday having a slight edge. Although today's action saw lower highs and lower lows in the signal line, the Qs were able to hold ground in the R1-R2 range. Based on current RSI readings, I'll be inclined to stand back if the Qs gap up at the open tomorrow as I wait for a more obverbought condition to develop over the next few days.

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