Tuesday Forecast

Tuesday is looking like a choppy slightly up day.  The technicals say chop sideways to an up day. Lets take a look at the chart:

The ADX line , or the indicator underneath the candlestick chart is way to high for a reversal, this usually happens under 20. The Williams% is also too high, its in overbought territory. The Aroon indicator, or the top indicator above the candlestick chart is doing something interesting...its force rate of change is low, indicating the pressure pushing the stock up is low. Its current position is telling us more of a drop is coming.
Say I really wanted to get a second opinion on the above situation, much like someone seeing a second doctor. What chart would I look at? In this case I would look at a 3x Bear ETF, which acts as an inverse. It also lets us see extra information behind the scenes:

Now this chart is telling us that while there are bad times ahead, there may be a bit of a recovery on Tuesday as traders are struggling to find some footing in the chopping market.

So: putting these two charts together allows me to paint a picture of the market on Tuesday. Slightly up and volatile. There may be climbs and drops that are extreme, I don't see a mellow day. Overall, I expect a bit of an up day, but not by much.
Overall, this market is still down channeling and this is not a time to get in the market. Sit out with your cash and wait. Unless your thing is puts. Or unless you are me and are able to profit off the market if its going up or down.
So Tues will be up a bit and then Wednesday I expect a bit of a down day. Look at the above chart how its been chopping up and down. Kind of like that. No big deals for Tues. Just a sick market looking for footing. But one it will be unable to find over the course of the next week and a half/ 2 weeks. Also, get ready for another big drop day like we had the other week. If we are seeing a bit of an up day i may purchase a small leap to hold and wait with for the big drop day.
So tomorrow I grill and sit by the pool. Tomorrow night Ill make another entry, perhaps while watching the Asian markets.

Enjoy your weekend,

Tradinginsider