Here is a 15 minute bar chart of Google.
The drop from 387 has gone further than I expected it to but I still think is will end above 338. My best guess now is 342.
Most corrections assume a 3 phase, zig-zag shape but this one is hard to see that way. This may be telling us that the next rally won't make it to 387 but for the time being I'll be looking for a move to 405 as the next development, not a rally to a lower top.
In any event notice how the volume on the drop from 387, while low relative to the rally to 387, showed a definite pattern of increasing volume on successive down bars. This pattern has changed over the past two days and now the market is showing a definite tendency for volume to contract as price has dropped below 360.
This morning for the first time we saw a significant volume increase on an up bar and a rally that was bigger than the rallies which preceeded it. Even though the market subsequently moved lower I think that this morning's rally plus the low volume on the subsequent break are facts pointing to an imminent end near 342 of the drop from 387.
2 comments:
Hi Carl:
Just wanted to let you know that i really appreciate your work. it helps me with my trading plan a lot.
I was just wondering about couple of stocks that you had previously mentioned such as IBM and MSFT,BOT. could you reevaluate them?
also i was wondering if you could use this theory to give some targets on big names like AMD, BRCM and AAPL.
will appreciate your help. Please let me know if it is possible.
I'm sorry, but I only post on stocks that interest me and then only when I have something to say about them.
This blog is NOT an investment advisory service.
As I have said in my post "Should You Speculate" (you can find it using the link READ THIS FIRST in the right hand column of the blog) I don't think amateurs should speculate. And professionals don't need my help.
Carl
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