The Sunny Side of the Street
Figure 1-- INDU Daily Chart
Today's Dow bounced as pretty as you please just below and then right back above the Attractor at 8169. Positive technical news, as far as I am concerned. Even more important, technically, the low of today touched the top of the Sunny_Bands midline and then bounced strongly upward, closing the day on a high.
The cautious news, technically, is that now a divergence is formed with the RSI, which went downward today on the daily chart, while price moved upward. See Figure 2.
Figure 2-- INDU Daily showing divergence
It is exciting to me to see the Sunny_Bands begin to turn upwards after days and days of sideways boredom. On the QQQs, the 25.66 Attractor has been holding price nicely, and today was no exception. The candlestick shown in Figure 3 sits firmly on the 25.66 Attractor, poised to move on upward.
Figure 3-- QQQ 15-min showing buy signal
Today's intraday QQQs gave a buy signal, which by itself might mean nothing, or even a false signal, but I believe it is a good signal because of the bounce off the Attractor and the now upsloping Sunny_Bands. I'm buying, looking for a push to 26.09 at the very least, where we will probably encounter some resistance.
As I write these commentaries I keep seeing myself as a war correspondent, with skirmishes here and there, news and rumors coming from behind enemy lines, and moves forward that then get subsequently foiled and pushed back. Then we fight some more and make a little more progress, and once again get pushed back.
That's the way it is, and has always been, in the markets. That's why so many market technicians have studied Lao Tsu's "The Art of War" to gain true insight into how the markets work. It is never just a straight line up or down, but a sequence of skirmishes peppered with wins and losses.
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