Go the Extra Mile Tuesday, page-3

Hi Guys,

I'm finding it a bit odd too.

Current candle is implying a rise.

Market depth (Yearly Highs - Yearly Lows) dropped today. Implies risk aversion. Breaking this down, there were less buyers wanting to take it higher, but there were also more buyers willing to look for value.

I get a reduction in volm today. Right on average,  but less than the previous 3 down days.

RSI has turned up from oversold, but not convincingly.



Short sales (latest date Friday)
Short sellers seem hesitant to take profits so far. This is a sign of bearishness.
At this point, we can't see the short action for today, but I feel if todays action reduces the size of the gross short positions significantly, it will mean that todays rise was profit taking. And we can expect more downside.
If there was no big drop in shorts, (haha), then perhaps there will be a short sharp rise when those shorts do take profit.



Conclusion.
The strongest single sign of more upside is todays candle.
Downside is evident in volm, yearly highs and lows.
RSI is upside, but I feel some ambivalence there.
Short sales will be telling tomorrow. Either today was the profit take covering, or we will have a quick rise in the next few days which I should sell into.

Overall I'm feeling more downside.

Hmmmm




MFx