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

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Market internals trade complete

The bullish upmove today started with a shake out and then gathered steam to bring in a decided bullish move. Our MktMatrixHiLo indicator had seen a possibility of this move coming a couple of days ago, so I alerted the readers of this blog. The chart below gives you a description of when the move was made and how much it moved. This indicator is a reliable identifier of this type of move. You can see in the previous post some of it's other trades.

This is a chart of the SP 500 cash index with a closing trade from the MktMatrixHiLo indicator.


Klatuu

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Market internals indicating a bullish stance

There are conflicts in this market with the Bears throwing down the Bulls more frequently lately than anytime since last March, however, an indicator that picks out swings in the braoder market has a different opinion. It would appear that our own indicator,  the MarketMatrixHiLo indicator, is showing a significant decline in it's lows. You can see this in the yellow line at the bottom of the chart. Correspondingly, the orange line of Highs is coming up from a recent bottom and crossing the yellow line's lows.

Similar to this scenario, I've marked other occurances using the blue vertical lines, showing noted short term bottoms in the market. Those other occurances have  seen sharp declines in both price and the MktMatrix's Low line followed by a steady climb up of the High line over the next two to three days, which has been followed by a corresponding climb in price as well.

The highlighted white center box is a blow-up of the indicator on the lower right corner. Here you can see the SP-500 cash index. While this doesn't indicate the market will stay up, it seems to indicate it we'll have an upward move.



Klatuu

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