Thursday, October 8, 2009

10.08.09 - Clean Downtrend Channel Break


The break away on strong Tick and AD on a moderate VIX after an early morning first-reaction buy at the 500-ema  and then again at the VWAP made this look like a trend day fairly early on.  And now we've definitively broken the down streak from the late September highs, and intermediate-term indicators are firmly pointing higher.  That said, we are starting to push into short-term overbought status.  In past rallies during this bull recovery run, of course, such readings have held for extended periods.

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