All three of my swing trading signals came into sync today as buy signals as price joined breadth and volatility for Tuesday’s open.
The Breadth and Volatility signals initiated buys on today’s open and XIV in an otherwise lackluster sideways day, it up 3.3 percent already on the day. (That alone would make it a decent day trade).
Given how choppy and frustrating the market has been of late in ignoring technical signals both on the upside and the downside, this may now be just a guess, but I suspect, the market will bounce tomorrow and maybe swing higher for the rest of the week
If we can call it an educated guess it would be based — besides the price, breadth and volatility buy signals in sync — on the reversal day on SPY in deeply oversold territory (two standard deviations of an average decline) that took place today (see the signal chart panels below).
SWING TRADING SIGNALS:
PRICE: Buy. (Day 1).
SHORT-TERM BREADTH: Buy. (Day 2).
VOLATILITY: Buy, (Day 2).
LONG-TERM BREADTH: Sell (Day 14).
CNN MONEY’S FEAR AND GREED INDEX: (15, extreme fear).
NIFTY-50 STOCK LIST: 24 Buys; 14 Overbought, 9 Oversold, 6 new buys today, 3 new sells.
(right click on the chart for a larger view)