Great work DK23.
Just to add some thoughts to other comments made by posters re TA. I think that the Nasdaq has already had a significant correction so any (I think it is due) retrace off that chart form is likely to be quite strong. I am more optimistic on the short term for the US markets as they look like a lot of jitters are already factored in.
Re IHL, the volumes are low at that island top where the Sp hit 71.5 and a good rule is that these positions are quite easily regained when we see these conditions. A good Equivolume chart is very useful to gauge congestion zones. The latest move could be a bull flag with previous/new high potential. (A close of 58.5 would paint quite a different picture!)
This brings me to some thoughts on today's action. Given today was an unusual day, some charts/tables to shed some light on it. Today is another example why we have to be very careful on reading daily charts as an indicator of what is really going on. This is happening a lot with IHL where I have found the intra is more useful for insight that the close.
VWAP/MedianVWAP is
57.9 (up 3.3) and the median up 3.5. SP is up 1 Note that apart from the closing auction at 57 there is little volume there. Almost all of the volume is above this price point.
The closing auctionThose watching the screen would have seen good buying into 58.5 (CHIX closed 58.5) So why does someone put a large sell on at 53? (especially when at the time there was no bid volume to soak) And especially when there is good demand at 58/58.5.
And we see 464,756 go through at 57. Note that the high volumes today are at high price points and lower volumes at lower price points.
So again we see the close not being indicative of the real action and this then translates to the Daily chart which looks weaker than it should. It is still fine but understanding what caused this is the most important thing. The close is not the reflection of the sentiment of many but of one.
The interesting question is why that sell was crossed in that manner and at that time. Could be many things.....perhaps a transfer from one nominee to another at a specific price point, perhaps cleaning the screen to accumulate, perhaps a clumsy trader (we have a few of them)......hard to guess.
