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Monday, January 26, 2009

01/26/2009 Market Recap: No Title

There is no clue today, let's see how the market goes tomorrow.  However tomorrow might not be a good day for bulls considering the bearish reversal of financial sector and 1196 stocks up on decreased volume in Russell 3000.

Firstly let's review the bad news.

7.0.3 NYSE Composite Index Breadth Watch.  Compare with the beginning of December, the rebound after the sell off on Jan 20th is weaker.

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5.0.1 Select Sector SPDRs.  XLF is a bearish reversal pattern, and the situation will be no good should the dropping continues tomorrow.

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1.0.3 S&P 500 SPDRs (SPY 30 min).  Although it could be a back test post to symmetrical triangle breakout, the MACD at the bottom of the chart could possibly give a sell signal if the market goes down tomorrow, and the MACD is quite accurate on this chart.  By the way, it has been two times that the market gapped down and rallied back up and even closed in green.  Will it still do so at the third time of gapping down?

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Then we have two promising bullish signs:

2.8.2 SPX:CPCE.  If the market goes up tomorrow, MACD on the following chart will possibly give a buy signal which is also quite accurate.

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The Institutional Buying and Selling from stocktiming.com shows that the institutions are in accumulation recently.

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