The lower open anticipated by yesterday's pre close 10/20 5M bar MA cross failed to materialize this morning (one benefit of focusing on intraday trades), but after a sluggish rise to R1 in the first 30 minutes, it was all downhill. On the plus side, the lost for the day was a modest .08, thereby considerably outperforming the other major indices.
Volume continues to lag howver, following suit for the past week with daily numbers again below the 10DMA.
The NAZ (not the NDX) McClellan oscillator shown above has consistently responded to readings at -50 and +50 support and resistance levels, with the latest turnaround cycle rapidly approaching the zero line. The oscillator seldom reverses before at least touching the zero line, suggesting more of the current trend to continue.
On an intraday basis the 10 & 20 MA 5 minute bars and the NYAD tracker did a great job of keeping us on the right side of the Qs. The subsequent failure of the rather feeble rally at the open is a further indication that rallies should be sold, not bought. Until the markets stop fading into the Friday close, the likely momentum is down.
This weekend we'll review the 3 LRs studies and update developments in the A50 and A200.