Stock-Market-Observations

MARKET MESSAGES

1/04/13

We’re getting that saw-tooth topping formation that is so common prior to a correction.  Watching for lower lows now.

01-04-13 SP FUTURES 60 MIN BARS

But the NASDAQ has already started down.

01-04-13 COMP FUTURES 60 MIN BARS

And Apple is one sick puppy.

01-04-13 APPLE 60 MIN BARS

The next chart shows an envelope limiting the upside.

01-04-13 SPX ENVELOPE 60 MIN BARS

Here is one way of counting the correction.  If true, this would indicate one more lower low and then a resumption of the advance.  Of course it could be that where I have a 2, it is really only 1.  We’ll see.

01-04-13 SP FUTURES 30 MIN BARS

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This is an interesting chart (60 minute bars).  I added this after the market closed today.  It shows an upward limitation trendline.

01-04-13 SP FUTURES 60 MIN BARS

Next the SP futures after the close today (10 minute bars).

01-04-13 SP FUTURES 10 MIN BARS

And next is the NASDAQ composite futures after the close today.  This chart covers the same time frame as the chart immediately above.  You can see how the NASDAQ is losing momentum quicker than the SP.

01-04-13 COMP FUTURES 10 MIN BARS

One question I have is whether the market is saw-toothing or forging ahead in a steady and methodical basis being constantly overbought.  The NASDAQ is saying that a correction is underway, while the SP could show it next week.  If the corrections are quick and shallow, we could be in for the constant overbought advance, but I’m not holding my breath for that one.

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This entry was posted on January 4, 2013 at 7:52 AM and is filed under UPDATE. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.