|Nightly Update for 05/17/12|
These are not recommendation.
Buy and Sell signals are sent to Option Signal Service. subscribers
* JACK and WMT where both on our Stock Watch list for 5/16/12 as buys
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In Tuesday night's alert to subscribers I wrote:
"Our projected big move for the week was for Tuesday, Wednesday, or Thursday. So far, the big move was on Monday. For our indicator to be right, and it usually is, tomorrow has to have a larger move than Monday, and I would expect it to be to the upside."
Monday's change was -6.74 (-1.10%). Today's change was -7.61 (-1.26)
Downside Pressure Nears Decade High
One of the indicators we track is Down Pressure. It's currently flirting with its most extreme levels of the past decade.
The indicator looks at the component stocks of the S&P 500 and computes how many points gained/lost were lost, and also how much of the volume flowing into up/down issues went into down issues.
Over the past 10 days, the average of those two figures is 73%, meaning about 73% of the points gained or lost in the component stocks were lost, and about 73% of the volume flowed into issues down on the day.
There have been four other days that match or exceed this reading 7/22/02, 10/9/08, 7/2/10 and 8/4/11. They were each within days of vicious market bounces.
SP500 bullish percent over put/call ratio is down at the levels of the 2009 and 2010 corrections, but not as deep as 2011.
IWM has broken below the Moon North Node price line. Yup, things are getting scary.