Duh... No Surprise There! (P.S. Heavy Volume Means Lot's Of Selling)
(to watch on youtube: http://www.youtube.com/watch?v=26RkKckko1E)
This is now 2 days in a row that I've been looking for that "Blow Off Top" to happen, but yet to get it. Will tomorrow be different? I think so, as the short term charts have worked off all overbought and oversold conditions now, and seem too be pointing up going into tomorrow morning.
So, I give the odds at 60/40 in favor of the bulls. The 60 minute chart dipped into negative territory on the histogram bars and rolled back up by the end of the day. The MACD's on it are now around the zero level and could turn back up positive or go back down negative... therefore they are simply neutral. There are similar patterns on the other charts too.
But, the light volume gives the bulls the edge tomorrow, regards of the neutral stance on some of the charts. The snow storms up north have kept a lot of traders from showing up to work, which makes the volume even lighter. So unless the gangsters decide to trick everyone tomorrow and put out a horrible Non-Farm Payroll number, I'd say we are likely to see that "Blow Off Top" that I've been looking for in the morning session on a possible gap up tomorrow.
However if it gaps ups, history says to fad the gap as it usually goes lower the rest of the day. Just the opposite is true if it gaps down, as it usually floats higher. Which will happen... I don't know? Since I'm still looking for a blow off top, I'd give the odds of a gap up higher then a gap down.
Ok, that's it. I'm keeping this simple. A gap up is most likely, which should be faded. A crash is coming soon, but I don't know when (nothing new there, as I've never known when... LOL).
Good luck everyone...