click on above image to enlarge & see 8/1/10 for how to interpret the top 3 charts
Today's trading was exceptionally constructive for the charts and was somewhat surprising considering tomorrow is Fed statement day. Everything did move in slow motion on anemic volume but at least the direction was up. On the charts above, in chart 1 row 2, you can see that today's volume was back in the line of the 3 wk volume downtrend line making Friday's big volume surge look a little bit like a fluke but we can't really determine that yet. A lot of people simply do not trade the day before a fed meeting. Wednesday's volume will be a key day to watch, it really must break out of the declining volume trend.
In chart 2 row 2, you can see that today's candle did finally move above the brown 100 day MA which is good but we also need to have the red green - 5/10 bounce (chart 1 Row 2) that is just now beginning to follow on through. In chart 1 row 3, in the lower half you can see the blue OBV line has barely started to turn back up which is what we need for a divergence lift to begin. All in all everything that needed to happen today did. If we can just get the follow through.
Hopefully, nothing will come out of the fed statement tomorrow that will scare the market again. Two of my limit buy orders triggered today and have moved them into the open trades.
Alan
