Not as Bearish as Expected

The market is not following through with bearish tape action today and it does put into question how much staying power this decline really has.  The weekly price bar may finish as a reversal hammer which could be bullish for next week.

Also there is a bullish divergence on price versus MACD histogram.

The downside volumes are just not enough to suggest a total heavy drop of this market.

The long side may be the best approach from this point onward.

It is tough to look at both sides equally sometimes, but usually when I do not see follow through it means that something was wrong with the originally scenario.  This could mean the market powers higher back to the top of the range again.

Posted in Online Trading

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