The Russell 2000 just broke higher out of the recent volatility coil. Admittedly the coil was a bit sloppy which may call into question the validity of the signal. But as I've noted in the past, most of the time the initial move out of one of these coils tends to be a false move followed by a more powerful and more durable move in the opposite direction.
Considering that we are now very late in the daily cycle (among other things) this might be worth watching for a potential reversal as the market moves down into the now due cycle low.
Toby,
ReplyDeleteThe the S& P being down 2-3 points most of the day, I thought that perhaps today was the day to begin the much awaited correction.
I was away from my computer and the S& P was down 10+ points.
Again, I'm thinking the correction is here.
Then I checked on B.O.W. and see a whopping 351.83 millions on the SPY.
It seems too early unless this is not the correction but just a down day.
Sometimes it's just a failed signal. We saw several attempts to buy into the crash in 08 that failed. I don't know whether this will have any significance or not but I'm certainly not going to be buying here.
ReplyDeleteToby,
ReplyDeleteWhat did you think about the fact that gold strongly resisted any upwards momentum of the dollar yesterday?
Toby it looks like we might be getting a correction in time rather than in price?
ReplyDeleteI went over gold in last nights update.
ReplyDeleteI doubt this is going to be a sideways correction. I suspect at some point during earnings season we are going to get quite a scare.