I thought that was pretty simple but ok, I'll explain. There are two charts superimposed on one another, the axis for the Dow (black) in to the right while the axis for the % of Dow stocks above their 50 day MA is to the left (green). Notice that the 30% level is the beginning of an oversold level. In the past when it has reached that level (and surpassed it sometimes) stocks usually bounce back. This is the only TA that I follow that would 'explain' the rally we are seeing. I noticed it a few days ago when it approached the 30% level but thought nothing of it since the other indicators I watch were not in agreement (of an oversold level). Hope that's clear now.
Thanks Babak , clear like water. I follow TA except when it doesn't work. I see the DOW rallying too, unfortunately all other indices look very tired imo. Still I see Dow going up several hundred points before it succumbs to gravity. Cheers !
i think the reason was fairly clear today. the market is convinced that the hurricane will force greenspan to stop raising rates. on top of that we had a big drop in oil today. why couldnt the market rally if oil is topped?
Everyday prices go up or down there must be reasons. So what, how many make money out of it? -------------------------------------------------- http://www.fengshui-123.com
vhen, I agree. That's the word on the street and has been for a few days now. As I said, that is the only TA reason I can point to, to explain the rally. Also, oil has been softening for a while now. You have to ask why things popped now. Since I'm a TA guy, I snooped around and this is the only thing I found. If anyone else has a reliable one that pointed to a rally from here, let me know. btw I think if people start developing an expectation that Greenspan will pause they are in for a very rude awakening.