At The Frontier in the Bear Bull Battle
- Posted by Greg Harmon
- on August 30th, 2011
A quick visual to explain why this market is creating so many disparate conclusions. The chart for the $QQQ below is breaking higher into new ground from the basing channel after a strong day Monday…
….with the $DIA in agreement also spending the day above the channel …….
…..but the $SPY is a bit less convincing, not over yesterdays levels…..
…..and the $IWM barely hanging on with a possible long legged doji in the making (a reversal signal)…..
Bulls wanted a true conviction up day for follow through. This would show up as a relatively long white candle with a small or no upper shadow. This is only close to happening in the $QQQ but not far behind in the $DIA. Bears are looking for the weakness that is appearing in the shadows of the $IWM and $SPY. Each side has what they want. Stalemate, for now. Breaking the doji candles higher will likely force more Bears to close out shorts and Bulls will add. And a fall back below the basing channel top will reinvigorate the Bears as the Bulls dump their positions.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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