NASDAQ Breaks Daily Support – Saturday 5 Apr 2014 (19:50)
OK, the title of this post should have been “Stock Market Crash Warning Indicator goes off”. But my bearishness has got me in trouble too many times and, frankly, my fingers have been burnt. So, I’m trying to be a little more, err, measured.
But last week ended up being a “round trip” – we finished almost exactly where we started, after a very ugly day on Friday. That is, ugly if you’re a Bull. Pretty as a peach if you like large range, smooth trending (down) days.
We closed below daily Support on the NASDAQ, damn close to it on the Russell and below cyclical Resistance on the S&P500 and Dow. Monday might give us a bounce during the morning – but it’s what happens after that, that will determine where we go next. Are there still Bulls with confidence enough to step in?
If you’re interested in the Stock Market Crash indicator the code is open and available here. If you’re new to Commitment of Traders data read this feature article. And if you want to plot High Volume Churn bars, the Better Volume indicator is a little dated, but still reliable.
Good luck with your Emini trading next week.