Nov

Stock Market Reversal… Intra-day

Filed Under Main Content, Services for Traders

Hi Toolbox Fans,

Here we go again.

The Main Stream media will tell you that “Wall Street” lost 73 points today, but it was actually far worse than that.

The part they leave out is that the market gapped up a few hundred points right out of the gate and gave it all back before losing another73 points.

We see this all the time and if you were trying to trade today’s market it was almost a slam dunk after that opening gap to know that the market was headed lower.

Circuit City was going belly up, AIG was burning through money in a style that would make a drunken sailor jealous and Deutsche Bank gave GM a price target of ZERO!

The Chinese were bailing out their own economy and for some reason the market gapped up.

Is it just me… or are these people crazy?

NONE OF THAT WAS GOOD NEWS!

So, like I said it was pretty easy to see it was going to be a down day, and the big gap to the upside almost guaranteed it.

Here is what we saw in the Research Lab…

Tracking the indices with ETF…

Looks like all big red candles for today and the volume looks a little light as well.

The Market Internals…

Well, the numbers look pretty weak in there as well, look at the total for new highs and new lows.

Here is where stocks are compared to their own moving averages.

Very Interesting!

There was a huge spike on the stocks trading above their own 20 day, but the overall weakness is seen in these historic lows on the other charts.

What is important to note is that it was clear that the markets were overbought on a short term basis.

A lot of people like to trade the index ETFs and the leveraged ETFs as well, here is what it looked like today, “from the open”.

The ETF Dashboard has a whole mess of interesting charts that allow you to see the market “from the open”. That is so important to making good decisions with your trading.

If we were looking the the market from “yesterday’s close” like everyone else these charts would look very different.

If you would like to see the market “from the open” sign up to be notified when we re-launch it in a few weeks.

Happy Trading!

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.