As readers of this weblog know, I role historical studies of marketplace activity to position possible directional edges going forward. This morning time nosotros encounter a release of positive edges, from the reduced release of novel lows on Midweek relative to Tuesday (Rennie Yang's Market Tells service has a overnice perspective on that) to the elevated negative persuasion to the non-confirmations I've discussed inward recent posts. Readers likewise know that I regard it useful to position when markets neglect to deed on their historical precedents. When markets *should* motion directionally based on historical precedent together with don't, *that* is likewise useful information. Something is dissimilar inward the electrical current marketplace that is outweighing those historical dynamics.
While a release of historical indications of rally potential convey been present, the marketplace "tape"--the NYSE TICK, the advance-decline numbers, the coin flows--has been tilted to the bears. With of import back upward at the Tuesday together with Midweek lows, it's fourth dimension for marketplace bulls to rank up. We need to encounter a meaningful rally off these oversold levels or the downside could teach abrupt together with ugly. This is a fourth dimension to hold out flexible, to hold out attuned to the marketplace tape, and--above all--to residue the pursuit of chance alongside the prudence of chance management.
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