Wednesday, November 26, 2008

TUESDAY's BREAKOUTS & BREAKDOWNS

We still don’t have many solid breakouts despite the large three day rally we’ve had so far. We have a steady number of breakdowns each day but they no longer hit thousands in number. The most promising gauge? The new highs-new lows index. The market hitting 235 new lows is actually bullish compared to some of the numbers we’ve seen last month (Oct 10: 22 New Highs/4,340 New Lows!!!). Yesterday formed a doji, or indecision day, and that means the market can go in either direction, nearly 50/50. Usually, this determination is made on the opening gap, depending on its size. There’s a mix of spiker plays, possible double bottoms, and a few breakdowns, all for educational purposes to be used in the future.

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2 comments:

Anonymous said...

I really like this segment. I hope you will do more of these. Have a good Thanksgiving.

Suchita ambardekar said...

charts very well commented...