Heavy buy-volume supports


The broader market is looking strong as heavy buy-volume supports the major indexes above their 50-day averages.

But we take caution over the massive overhead resistance, that’s potential sellers looking to unload shares as the market returns to higher levels of the past.

As we’ve mentioned, we’re suspicious of any rally that lacks a good Follow Through Day, which is the case now.

The parameters of what makes a good FTD have been altered for today’s more volatile market.

Where 2% used to mark a good FTD, we now prefer to see 3% to 4%.

But with or without an FTD we still need to see Leadership show a strong hand to support new breakouts.

Our latest breakout from a top earner, Green Mountain Coffee (GMCR), is looking questionable.

GMCR is the only candidate we have in breakout mode.


No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: