Friday, March 07, 2008

Friday wrap

Top chart is daily, lower is 5 minute. Increasing volume pattern today and for most of time it was downhill. The afternoon bounce off of S2 might seem encouraging, but I suspect that late bump up off S1 was short covering, not new longs. The NYAD held up remarkably well to the level of early selling and although we saw many violations of the Jan lows today, the late surge managed to restore many of them back above Jan support levels. The NDX (QQQQ) stocks above the 50DSMA has faltered once again, and just for another perspective I've added the AROON indicator on the chart, optimised for the Qs.
I devoted an entire post to the AROON a while back. . . it's an interesting tell for trading versus trending markets and it's currently on a SELL.
Check back tomorrow for the Qs weekly update.

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