One look at the charts below tell the story and we can sum it up in three words when we look at the 60 minute charts of the OTC Comp. Dow and S&P 500.

“Danger Will Robinson “

Seriously look at the blue and green circles on the charts below. THAT is major negative RS divergence.

As you can see, everyone of these indexes are saying the same thing. Retest of highs on major negative RS divergence.

Yesterday it was dare we say? Today? We double dog dared ourself to say it and we’re saying it right now CLIMAX RUN. Gosh with this vertical move up in these follow the leaders it really makes one wonder just how much ammo these names have got left in them on earnings season. It makes one wonder if earnings are being priced in. Aside from these names though a fair amount of the follow the leaders are just going sideways which may explain the negative RS divergence in the indexes IE concentrated to a few names.

You have got to be out of your mind to chase something like this.

Gosh where is the nearest support now that this issue broke into new highs and the pink line POH? You got it – 88.00 . Then maybe we’ll look at it again.

Notice today’s bar? It’s near the lows of the day. That’s not buying here, it’s distribution while you have a ready, willing and able emotional herd to sell to.

By David Grandey

www.allabouttrends.net

To learn more, sign up for our free newsletter and receive our free report -- "How To Outperform 90% Of Wall Street With Just $500 A Week."

David Grandey is the founder of All About Trends, an email newsletter service revealing stocks in ideal set-ups offering potential significant short-term gains. A successful canslim-based stock market investor for the past 10 years, he has worked for Meriwest Credit Union Silicon Valley Bank, helping to establish brand awareness and credibility through feature editorial coverage in leading national and local news media.

© 2010 Copyright David Grandey- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Comments

Zack
26 Sep 10, 09:24

pull back maybe 100-200 points on the dow

markets going higher. Same way as March 2009. You heard it here first,

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.