Check out this sequence of $NYMO, $RUT and $SPX action from
2010. If we repeat, maybe we rally hard tomorrow (on a
monster gap up), reverse yesterday's loss (on $SPX at least), only
to hit 13 ema and come back down for a test of 1340. So,
1390ish, then back to 1340 or so. That might mark a more
sustainable "bottom" -- don't think we can just flat out bottom
today. A new low in the 1340 area will likely produce a
honkin $NYMO divergence, $VIX divergence and lots of bearishness.
I believe this scenario is predicated on AAPL not topping
until very close to their earnings.
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Wow, the Daily NYMO below
Sub hundo club
Posted by sethbru on 10th of Apr 2012 at 05:15 pm
Wow, the Daily NYMO below 100 last occurred at the Nov low before the long leg up. Could be a short term bottom.
http://stockcharts.com/h-sc/ui?s=$NYMO&p=D&b=5&g=0&id=0
Hypothetical $NYMO positive divergence
Posted by kalinm on 10th of Apr 2012 at 05:33 pm
Check out this sequence of $NYMO, $RUT and $SPX action from 2010. If we repeat, maybe we rally hard tomorrow (on a monster gap up), reverse yesterday's loss (on $SPX at least), only to hit 13 ema and come back down for a test of 1340. So, 1390ish, then back to 1340 or so. That might mark a more sustainable "bottom" -- don't think we can just flat out bottom today. A new low in the 1340 area will likely produce a honkin $NYMO divergence, $VIX divergence and lots of bearishness. I believe this scenario is predicated on AAPL not topping until very close to their earnings.