Oct 21: 一个重要的反转日？

stringzero

(zt: by Trader Mike)

We had a pretty good reversal today which made outside days on the S&P 500 and Nasdaq. Both of those indices made marginal new highs intraday and had volume increases today. So that qualifies them for key reversal day status. As usual though, we need to get some follow-through selling for this to be nothing but another blip in the multi-month rally.

As usual, I don't think there was one thing responsible for the selloff this afternoon. I think there was a technical aspect to it thanks to the indices failing to hold the marginal new highs they made around 10:30. I was already leery of that early push to new highs because Goldman Sachs (GS) was showing weakness as well as the 2:00 Beige Book release. We got a little selling when that data hit the wires but things stabilized until an analyst note about Wells Fargo brought out more selling. (Did the GS action telegraph the later WFC analyst note?)

Whatever the reason(s) for the selling, I think there's good reason to get cautious here. I haven't liked the way many stocks, which had good numbers, have reacted to their earnings reports. Goldman, which is regarded as the cream of the crop of banks has been weak ever since its earnings:


The other day I thought Intel (INTC) was set to recover from its post-earnings slide but it has continued to slide and is now back in its old trading range.


TXN has had a disappointing post-earnings reaction.


Add AA and IBM to the club:




So there's nothing really terrible in any of those charts. They just tell me that those stocks (and the broader market) got a little ahead of themselves. We're starting to see some cracks in the indices now too. They had been able to mask those slides that individual stocks have had but that changed today. It's most evident in the small caps. Note that the Russell 2000 was not able to take out its September highs like the other indices have done.


The S&P 500 and Nasdaq are now in danger of slipping back under their September highs...

epsom

Thanks

silverado

agree

ranchgirl

scary

ChuChu888

wnd4

thanks

ut1984

koo

weigoodone01

wowo

好图

rsc163

thanks

dara

Hard to say if it is a good or bad sign for bear

Intel/GS with good earning, but their share price keep dropping.

But their down size could be limited, so at some point, they will give big market a boost, that is not good for bear.

stringzero

Turn out yesterdays last hour diving was another bear trap. MM won't dump stocks until allbears become bulls

jackyking

ranchgirl

Turn out yesterdays last hour diving was another bear trap. MM won't dump stocks until allbears become bulls
stringzero 发表于 2009-10-22 17:02

Great observation and comments

ranchgirl

However, I am still bearish

ranchgirl

It is up too much since March lowest point