The Market takes a look at 2789 and at the declining line from the all time high and quickly decides to put in a short-term peak. Profit-taking initiates a sell sequence with selling into each of the subsequent bounces throughout the rest of the day.
The T volume oscillator responds by dropping significantly below zero and this in itself is potentially a warning, as the strength of selling yesterday could indicate that there is more to come.
However, we are still above the Buy Signal level. The high Arms Index reading yesterday is high enough to suggest a wash-out may have occurred (or is nearly complete) and that a quick sell-off may be all that was required to release the pressure of the recent bullish adventure.
The exciting roller-coaster ride continues.
Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.