Attached is the updated Advance Decline Breadth Charts, including the cumulative AD line, momentum index, cumulative AD volume line, 10 Day AD oscillator and the McClellan Oscillator and Summation Index.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
(2014-10-03, 05:08 AM)JimStudent Wrote: John Murphy over at stockchart.com says there is a potential head and shoulders pattern on the Russel signaling a bearish top.
"SMALL CAP HEAD AND SHOULDERS TOP?... A debate is going on within the technical community as to whether or not the Russell 2000 Small Cap Index is in danger of completing a "head and shoulders top". A case can certainly made for it, although it would be an unusual one. The daily bars in Chart 1 show two smaller peaks (shoulders) formed during January and late August. In between those two lower "shoulders" a "double top" was formed between March and early July. So while it might not quality as a textbook "H&S" top, the bearish warning is still valid. At the moment, the Russell 2000 iShares (IWM) are testing a "neckline" drawn under its February/May lows (red line). A downside violation would complete the topping pattern that's been forming for months. The negative volume pattern confirms that bearish analysis."
What do you think?
Small caps are in Stage 3 and the breadth is weak but in the oversold zone short term, and so possible technical bounce began at the end of the week, but the breadth weakness is warning that if the bounce fades and can't make a new high or close back above the 200 day MA, then a Stage 4A breakdown attempt could be possible in the coming week/s in the small caps.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
(2014-10-05, 10:47 AM)isatrader Wrote: Attached is the updated US 10 & 30 Year Treasuries charts.
The weekly bottoming chart of the US 10 year looks quite similar to that of the dollar before that took off to the up side. I am not saying that it will act the same, but it looks, at the moment, like a bottom.
