Wednesday, November 24, 2010

US Dollar Up - Stok market Holds the gain

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It looks like I was wrong and the indexes did not pulled down, but moved side-way. the money flow an all intraday time-frames is positive. Third time the S&P 500 and DJI are coming close to their highs seen on November 18 and November 19. If those highs are broken, the odds could be good we may see indexes running up to the highs seen on November 5th. Under those conditions, I would set tight stop-loss for short position.

US Dollar index has recovered from today's morning negative trading, yet, indexes manage to hold the gain and did not dropped. This is not good sign for Bears as well.

Right now, I'm on 15- and 30-min charts. Money Flow on the 15-min charts started to decline (yet still in positive area). Lets see if the 30-min money flow follows it.

Bear in mind that the volatility level is high and we may see sudden strong moves.

Another point worth mentioning is that we have extremely strong Bullish Advance/decline reading. On Nasdaq 100, all 100 stocks are traded above their yesterday's close. Advance/Decline readings on the S&P 500 and NYSE composite index are at very high levels as well. In many cases such strong readings could be seen before strong down-turns.

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