Friday, 29 October 2010

The market is walking on a very fine line......possible NYSE count

The markets are definitely looking a bit tired with different internals pointing to the downside.
A possible bearish count still in the cards is that of NYSE which can be seen in the chart below.
An alternative bullish count would be to label [2] as (1) of wave [3] up; but for the time being TMN will stick to the bearish one.
Since the July rally, divergences can be found in NYMO and TICK; the percentage of stocks above the 50MA has been in overbought territory for some time and  is now looking downwards; and finally, the volume indicator is going nowhere for the last couple of sessions and has printed its high at the beginning of October.
Certainly, the next trading sessions are going to be extremely important.....

                        click on chart to enlarge

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