Saturday, January 1, 2011

Nasdaq Losing Momentum

It is really starting to become more evident to me that a pullback or at the very least a pause is in order soon. Study the attached charts carefully. As you will notice is that as the nasdaq has been rising on lower and lower volume, the RSI and MACD indicators are NOT confirming the advance but more importantly, look at the NAHL indicator which shows that the nasdaq's advance is taking place with less leadership as NEW HIGHS versus NEW LOWS is not confirming the advancing nasdaq. This is a NEGATIVE DIVERGENCE indicating a weakening breadth to the rally. This is NOT healthy and tells me that the market is getting tired now and we are likely to start a pullback phase soon.

No comments:

Blog Archive