Resistance

Sorry, no chart today. However, there are several points that make more optimistic that today’s up-move could be a beginning of stronger up-move.

By referring to the chart described in my “NASDAQ 100 Chart” post I may confirm some positive signs:
- The VIX (volatility index) started to decline;
- Advancing issues are growing;
- MVO become zero after hitting low negative levels;
- Stochastics and RSI are moving up;
- SBV is in the advancing mood.

From 1 year chart, I may see that volume started to drop an all major indexes including S&P 500, NASDAQ 100 and DJI and this is a positive sign as well that may indicate that panic selling becomes exhausted.

Another positive sign that I see is that at the end of the session on January 9, as well as in the middle of the session on January 10, 2008 we may see big volume during the price move up, and I do not see the strong reaction on this intraday volume. In case of the down-trend I would expect much stronger and more prolonged in time move down. Instead we saw move down on January 11, 2008 and today the market in the positive mood again. Yes, we may see the reaction on these volume surges later; however I would say that if the market continues to move up by ignoring the intraday volume to the price up then we could be in the beginning of the mid-term up-trend….

I hope I’ll post some charts later that could explain my points more visual.