Rally Leaves the Stock Market Breadthless
Stock-Markets / Stock Markets 2014 Oct 09, 2014 - 09:56 AM GMTThe Feds were playing with their jack-in-the-box again with a 70% retracement of sub-Minute Wave i. They had a little help from BoJ’s Kuroda with a spike up in USD/JPY to 108.74 just before 2:00. Since 2:00, it has declined back down to as low as 108.05.
It is clear that they are attempting to get liquidity by stopping the shorts out of their positions. But it’s not a change of trend. Resistance at the lower trendline of the larger Orthodox Broadening Top appears to be the stopper.
Now for the Wave (iii) decline…
NDX is currently challenging the 50-day Moving Average, but is likely to close beneath it and possibly back beneath the lower trendline of its Orthodox Broadening Top.
It appears that, not only was there an attempt to stop out the shorts, but also to gain some altitude to sell into in the overnight market.
The NYSE Hi-Lo index didn’t budge today, suggesting a complete lack of breadth in the rally.
Regards,
Tony
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