Monday, March 23, 2009

03.23.09 - Powerful Trend Day

Each offer of supply has been met with buying today on the TALF news, although the SPX is now struggling with the 800 level.

Hallmarks of an up-trend day:
  1. Early Attempts to Sell Met with Buying;
  2. Consistent Higher-Highs and Lows;
  3. Strong Pullback Support at VWAP/ Floor Pivots;
  4. Rising, Even Sloped VWAP, Adv. Volume & Cumulative Tick;
  5. Stopping/Resistive Relative Volume Peaks Met with Buying;
  6. Declining or Level VIX;
  7. High Correlation among Leading Industry Sectors;
  8. No Breakdown during the Mid-day Lull;
  9. Prospectively, Weakness in Bonds & Commodities (Rotation);
  10. Strong Net Advance - Decline Levels featuring low volatility.
In fact, the A-D line is pegged near maximum values with ADUSD exceeding 4,400! Do you have more to add? Leave them in comments, please! From this weekend's ETF Rewind Pro:

"We have a 'mixed signal Monday' coming up both quantitatively and perhaps in terms of news flow respecting pending Treasury details on plans to revamp the TALF. With overbought conditions negated late last week, the markets should have the potential to regather strength going into the end of month. Meanwhile, many of our model shorts have been gradually stopped out, and new long-side trend leaders have emerged for a near full rotation of the Trending portfolio."

Reading: Quantifiable Edges on Gaps.

The Recovery:

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