Stepping back a little bit to review the Qs in daily, weekly and monthly bars with the 3 linear regression(30,11,3) study. Whether the Qs are destined to mimic other major indices that have already retraced back to mid-2002 levels remains to be seen, but the daily technicals continue to suggest that's a strong possibility.The LR30 mean has served as overhead resistance for the Qs October slide. Until the Qs can muster strength to get above that line longside bets are best kept in check. For the present, even the shorter term 11 and 3 period LRs are downslope . . . yielding 3 arguments for the shorts.
This a little refinement of my ongoing weekly pivot study, in this case focused solely on the Qs.The interesting thing here is that as the PP trends down (series 1-3) the 3 and 4 week moving averages of the R1-S1 range (series 4 & 5 have continued to rise. As long as these 2 slopes continue to converge, the downtrend is firmly in place.
We are clearly experiencing a new paradigm in the markets that probably has a few more surprises in line for us before a real bottom sets up. Today the DJ is currently up 156 while the VIX is down 4.5% to 76.5. Anybody who'd suggested a VIX of 76 in the midst of a rally 12 months ago would have been hauled off for psychiatric evaluation . . . but here we are today.
We are clearly experiencing a new paradigm in the markets that probably has a few more surprises in line for us before a real bottom sets up. Today the DJ is currently up 156 while the VIX is down 4.5% to 76.5. Anybody who'd suggested a VIX of 76 in the midst of a rally 12 months ago would have been hauled off for psychiatric evaluation . . . but here we are today. I'm sounding like a broken record, I know, but IMHO daytrading continues to be the best risk management approach to current market volatility.
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