Temptation and Conscience - Wednesday, page-8

Thanks Jako

Yearly Highs and Lows

Summation finally broke above the zero line. Can only be a good thing, the new highs were also being found in a significant way, first time in a while. Would have liked a more definitive test of the lows.

The pretentious is still heading down in the long term, but yesterdays action has started the turn up.


Candles

Big Green jobbie. Usually a sign of better things to come. All happened on average volume. Needs confirmation.
Positive divergence in OBV still happening.



Relatives by size.

XSO lagging the larger sectors.  This seems to be the obverse of the move down, where the money was leaving the big stocks leaving the XSO all dressed up with no where to go but down.

Seasonally, these suckers should be booming. Given +/- a week or two against a monthly seasonal boundary, they are running out of time. If they fail to boom, what could it mean? A belated, perhaps stronger boom later? Or a failure altogether?




Conclusion

A few indications that the markets are looking to rise from here - Accumulation in the large caps, short term  market breadth improving. A few short term candles ( looking for confirmation).

I'd feel more comfortable with a definitive bottom pattern either in the candles or the Hi Lo Summation. But maybe I'm being a bit precious about it.

Trade well.