Monday,
The DJIA shed 239 points today, but the sell volume does not confirm the selling to be anything more than short-term panic selling by those who do not know any better…
Today’s volume on the DJIA shows it to be less than Thursday’s sell off and that shows the sell conviction is weakening over time rather than strengthening and that is a warning flag to bears to start covering their positions. This comes (amazingly) just in time to provide support for the market at a key technical point which will create a new bullish up-trend line; and we all know what that means – Buy. I would look for the lower BB line on the DJIA to provide the support level here.
The NASDAQ lost 46 points for the day also now pulling back to technical support on the chart, and though we can still bounce around for a day or three; I would look for us to find support provided by the middle BB Line on the NASDAQ chart or the lower BB on worst case scenario… I would be a buyer here of quality oversold technical opportunities, with a stress on the word “Quality”.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is tells came in at (01) showing us that this pullback has simply found the same support line it bounced off of. When the bounce is fake you tend to see the support level vanish on the test of the support, butt we don’t have that so we anticipate this pullback (which we knew would happen) to be nothing more than a pullback and a strong buying opportunity.
As Always; Be Smart, Be Patient, & You Will Be Successful.