Potential Trouble in the Markets

3 DAYS ago the nasdaq put in sell signal confirmation as it broke below the signal day low of 4875.42. Since then the downwar moves have continued with accelerating volume each day. However, the IWM SOXX group is still one or two distr. days away from hitting their signals; the SPY may set its signal day today if the it closes down, which is looking likely now.

The major bright spot has been precious metals. All of them are currently breaking out of their consolidations with solid volume.

Most other market leading sectors like transports and semiconductors are testing the top of falling channel lines they had broken out of. The SOXX and SPX are both retesting top channel lines. IBB is retesting its head and shoulders breakout line. KOL and SLX continue to hold above their 10dmas. UNG big move today on higher volume and pocket pivot off the bottom if rising channel.

Stocks wise, AKS is concerning because it’s down on gigantic volume after announcing a 60mil share sale. This is potentially 33% of its current float. I’m not sure not to respond to this type of thing because its the first time I’ve experienced it. I think I’m waiting to see if this is just a temporary drop and what looks like a huge volume confirmation is just a technical aspect of the share sale. I think I’ll just go by the 7wk rule.

INO tested a huge top channel line’s bottom yesterday and did the typical inverted hammer. Today its down heavily around 7% at 11:20 on heavier volume, but its testing its 10dma and rising channel line support. We’ll see how this one goes too. It’s technically not a 7 wk rule candidate yet because its only been above its 10 for six weeks. But I may move out of it next week as it will technically be six weeks on Tuesday, on into the 7th week starting Wednesday. And a huge run-up.

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