from eBook earlir this week
>>Be extremely cautious of this market right now. All the major charts we follow are currently in a weak price location. Do not be long unless charts trade back above those POC levels. This may not happen. It is quite possible that the high earlier this month was the end of a bear market rally. With current price location it is quite possible that another leg down is coming. Most importantly watch the half high levels; if there is extreme weakness these will not provide support<<
From subscriber today:
>>Could it be that the market is aligned for a sell off breaking the next Half High supports? …. as you said, the Half High levels are now supremely important. Please tell me what you are thinking. Would you bet on support at Half Highs or not? <<
Price location is poor on almost all major charts.
NasComp low today is just above 1/2 High, ditto R2000 index. NYse trades BELOW that level.
The more minor but VERY important level to watch now is the 1/2 between the November low and subsequent high. look at SPX, SPY, ES – all these charts are consolidating below here. I’d want to see price printing back above those levels before even thinking about the long side.
NasComp, also DJI, DIA, UK FTSE100, all consolidating below that 1/2 point between the Nov low and Jan high. Very poor price location.
German Dax index is the weakest and looks like a test of the recent lows is imminent.
By this measure the two strongest charts are the Q’s and NQ, so I’m watching these the closest. If these two start breaking down we are in trouble again.
