New highs again... but a sharp reversal. Keep in mind the
100+% run in the last year -- while it is possible this does
another running correction (sideways move), I would think at some
point, it must do a meaningful retrace. I believe this is the
last major sector to correct.
That is definitely one to watch and that divergence is
pronounced until we see that it wants to recycle. I also see
some divergence in the OBV. In the short term we are right at
the 20 day MA with some positive div on 5 min and 60 stoch under 60
since about 10 am EST so we might see some support right here but
for a swing these are levels to watch for sure.
An ideal long set-up with the stoch would be to stay under all
day and then gap lower slightly tomorrow and immediately reverse
giving you about a day under the 20 level.
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homebuilding sharp sell-off on volume
Posted by kalinm on 25th of Oct 2012 at 12:27 pm
New highs again... but a sharp reversal. Keep in mind the 100+% run in the last year -- while it is possible this does another running correction (sideways move), I would think at some point, it must do a meaningful retrace. I believe this is the last major sector to correct.
SHW now taking a beating.
Posted by kalinm on 25th of Oct 2012 at 01:06 pm
SHW now taking a beating.
That is definitely one to
Posted by tom on 25th of Oct 2012 at 12:38 pm
That is definitely one to watch and that divergence is pronounced until we see that it wants to recycle. I also see some divergence in the OBV. In the short term we are right at the 20 day MA with some positive div on 5 min and 60 stoch under 60 since about 10 am EST so we might see some support right here but for a swing these are levels to watch for sure.
An ideal long set-up with the stoch would be to stay under all day and then gap lower slightly tomorrow and immediately reverse giving you about a day under the 20 level.