Charting Market Internals as we Break on Through to the Other Side May 25
Thu, May 25, 12:11 PM ET, by Corey Rosenbloom
It’s a non-stop bull market that’s going to go higher toward infinity!
Not really, but it sure feels that way.
Let’s take a look at the breakout and what Market Internals say on the new highs:
If you’re new to the trading world, you may either be puzzled by this endless bull market (“when will it end?!”) or overjoyed that you continue to make money easily and efficiently via buying every single dip this market gives us (“it’ll go up forever!”).
Still we’re trading the same market that does have a strong resiliency and persistent bullish strength.
While Market Internals where diverging on the recent rally up, the buyers ignored this signal and boosted the market higher this morning with a gap-up and violent short-squeeze event against the bears.
Look closely at Breadth this morning to see price rising but Breadth declined on each up-bar.
VOLD – Volume Differential of Breadth – has been weak and flat since May 19th.
On the one hand we have and endless short-term bullish rally and on the other we have market internals painting a cautious picture.
With dispute between price and internals, monitor your open positions closely and follow price until it reverses.
Price can’t go up forever… can it?
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Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
SDI Glossary: "price" Definition
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SDI Glossary: "Stock" Definition
SDI Glossary: "Trend" Definition
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