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Thursday, August 27, 2015

An advanced move

Here's what I think we are going to do. Based on what I am seeing the indicators doing and a bit of crowd psychology, I think that things are going to blow off a bit tomorrow. We've had a great run back part way up but I think that things are going to peter out a bit. Lets look at this QQQ chart:
First, the QQQ:

You can see that I have a few more indicators on this for more clarification. First of all, looking at today's candle, you can see that things are looking bullish. Its a white candle, with a slight gap up which is also bullish. However, things are starting to change on this candle real-time. A tail is starting to grow on top of the candle that wasnt there 30 minutes ago. That is a weakening sign meaning the pricegap is weakening between open and close, as in the price was higher, but is starting to fall due to some weakness. Look at the bottom indicator. The Williams%R says that we are almost at the top, or overbought. Sure, its been going over the top on this indicator, but we are on shaky ground right now. The market just had the flu a couple of days ago, we aren't going to go pole vaulting just yet. Most importantly, look at the Aroon indicator above the candlestick chart. The Aroon indicator is still showing a strong negative, with the red negative line hardly moving down with this rally up we have been having. Very interesting, because the Aroon indicator is a much more powerful pre indicator of anything else on there.
So. I am going to be checking 3 charts 40 minutes before market close: QQQ, SPY and AAPL to see how the candles have solidified for the day and will make any recommendations at that time before close, so come on back.
The way that I am analyzing this is with other indicators behind the candle while looking at market psychology as a whole. No one is buying the possibility that we are just going to be going back to last weeks levels and trucking on from there.

Tradinginsider

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