Monday, July 16, 2012

No stimulus yet

No signs of China stimulus

There were no signals of China stimulus on Sunday or Monday.  In my previous post I has stated that a lack of stimulus would likely lead to declines today. The market was only down marginally today, but I think it would have been worse if we didn't get to see Ben Bernanke in the spotlight a couple times this week.  The stimulus fans will be hanging on his every word looking for further easing, but I find the chances of that slim.  Earnings will really start coming out this week.  We'll see how the market reacts, but the RumWave chart (that I don't post) still shows ample room to decline.


The most interesting thing on the daily scores is the RumWave score, which has taken a bit of a greenish tint. It still doesn't signal time to get into long positions, however.  


What I find interesting about the 4 hr chart is today's candle.  It shows a shoring up of momentum to the long side.  Also, the RSI has shown some decline here, and has room to go down quite a bit.  The %B is also showing a declining slope.  


The daily chart doesn't really say all that much, except that bearish divergence that we had already discussed.  Friday's rally was contrary to that indicator.

I look forward to seeing how it goes tomorrow.  Best of luck to your trading!

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