Tuesday, September 30, 2008

Disappointing volume - not oversold either

You would think one of the worst one-day losses would bring about some interest on the part of traders or at least push markets into oversold territory - but neither happened. The former you could argue against with a sizable surge after days of limp volume, but volume was well off the frenzy of a couple of weeks back when the background news turned into the forefront news.

More worringly, none of the markets turned oversold and breadth indicators remain frothy, especially the Summation Indices.

NYSE has a stochastic reading smack bang in neutral territory; there could be a lot more selling to come:

Bulls might have found one of Oasis of hope - the Transports; an important leading index from a bottom

I now return to my vacation...

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website