Market internals indicating another drop

Two of our indicators, the MarketMatrix and the MarketUpDownCandles, are showing a possible short term peak, usually followed by a modest drop. A third indicator, MkttDiff, seems to confirm both of these. First let's look at the MktUpDnCandle.

When two or more of the red bars on the bottom indicator in the chart are followed by a small blue bar, it has usually been followed by a drop in the market's price.You can follow the bars on the bottom with the price to see this pattern. Another of our indicators, MktMatrix, also looks at internals of the market to identify patterns of movement. The yellow line (in the chart below) usually peaks on the indicator, and is followed by a higher price, peaking and then falling again. This is then followed by the Orange line coming from the bottom of the indicator and crossing the yellow line. At that cross, the market usually shows a decline in price while it digests this change. Sometimes the crosses can take a couple of days. Finally, as a confirmation, the MktDiff indicator (previously discussed here) is also anticipating a market drop (2 chart down).

MktDiff anticipating a drop in price.

Plan accordingly and good trading,

Klatuu