“Selling Climax” Day

SPX Monitoring purposes; Long 8/29/22 4030.61

Monitoring purposes GOLD: Long GDX on 10/9/20 at 40.78.

Long Term SPX monitor purposes; Neutral

On Friday the TRIN closed at 2.10 and Tick closed at -299 which is a bullish combination and predicts a low the same day as the bullish readings to as late as two days later which would be Today. Also on Friday, the SPY had a “Selling Climax” day (volume near double the previous several days’ volume) which shows exhaustion to the downside. Today the SPY closed below its lower Bollinger Band and previous examples flipped the market sideways or reversed up. Volume should light up starting tomorrow and continue to decrease into Friday going into a 3-day weekend holiday. It's common for Markets to reverse around holiday weekends.

Updated this chart and nothing to add. Yesterday we said, “The second window down from the top is the VIX/VVIX ratio. This indicator can also measure a form of panic by measuring the velocity of this ratio. The top window is the RSI for this ratio; readings above 70 suggest short-term exhaustion, and the current reading is 80. The second window up from the bottom is the “Percent Bollinger Band”. Today’s reading is .99 showing that VIX/VVIX ratio is at its upper boundary line and is due for a pause. The red vertical lines show the times when both RSI and Percent Bollinger Band reached overbought levels. Should see a bounce in the market short term.

We updated this chart from yesterday. We want to point out that a new decline in GDX never began when the 18-day averages of the up-down volume percent and Advance/Decline percent traded below -20. When the -20 reading was recorded on both indicators the decline was finished and the base-building process began. This time could be different but today’s tests of the July low on GDX should find support and in general continue to go sideways, possibly for several more weeks. This type of setup appears to be working out as the previous signals worked out.


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Signals are provided as general information only and are not investment recommendations. You are responsible for your own investment decisions. Past performance does not guarantee future performance. ...

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