Wednesday, August 25, 2010

Russel 3000 is easing

Russel 3000 -a large volume index- actually the market itself is hard to manipulate and shows plenty of things in advance.
I only have time for a quick update with no charts today.

R3000-1 day fakeout analysis: SBV histogram shows negative divergence suggesting a second, but exhausting selling leg. Today selling volume rose. There is a chance of re-test current cycle low in next 12-16 trading hours.

R3000-1 day analyisis: SBV histogram suggests temporary exhaustion of selling volume.

R3000 60 min: MV oscillator shows local maximum and immediate weakening volume. This usually means a further resistance re-test in next 12 trading hours. AD sentiment rose to 41, at 50 there is a chance to have temproary easing.

RIFIN: Financials 60 mins show confirmed temporary bullish signal. We need to wait till same happens on the 1-day chart.

In summary, market internals are easing, market status is not safe. A big volume up day might be able to change current trend, otherwise there will be a further selling leg.

GOLD: gold has a huge volume up on 3 days chart pushing selling volume down with an absolutely strong power resulting a huge rally up. If that upward momentum connects to general stock market easing, pushes stock prices higher resulting weaker dollar, gold will make a huge bull rally. Gold has an absolute bullish flag on all charts now. Tomorrow we will buy a new HUI unit.

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