Thursday, August 27, 2009

08.27.09 - Buying Opportunity of a Lifetime...

OK, I'm just kidding -- but that opening dip did get bought fairly quickly and we have recouped half of the a.m. losses. From an internals perspective, the V-recovery was confirmed with precision. Note the confirmed turn in the AD, VIX and Cumulative Tick lines at 8:30 a.m. on my charts.

While it looks bullish just here, the daily highs down-trend channel remains intact and this is day three of prospective lower highs and lows. For the p.m. trade, I'll be looking to see whether or not that inclining 5-DMA can act as support now that we are back above it (cyan dashed line).

Update: 5-DMA held and we were off to the races. With two hours to go, although internals are still net negative on an absolute basis, their slopes are highly positive.

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