Wednesday, November 08, 2006
Technical Indicators
Relative Momentum
Index (RMI)
Introduced by Roger Altman in the February 1993 issue of Technical
Analysis of Stocks & Commodities magazine, the Relative Momentum Index is a
variation of the Relative Strength Index (RSI). Instead of counting up and down
days from close to close like the RSI, the Relative Momentum Index counts up
and down days from the close relative to a close n-days ago (where n is not
limited to 1 as required by the RSI).
As with all overbought/oversold indicators, the RMI exhibits similiar strengths
and weaknesses. In strong trending markets the RMI will remain at overbought or
oversold levels for an extended period. In non-trending markets the RMI tends
to predictably oscillate between an overbought level of 70 to 90 and an
oversold level of 10 to 30. When the RSI diverges from the price, the price
will eventually correct to the direction of the index.
Read More...
NASDAQ Chart of the Day
OMNI
is winding up within a large triangle range, which has developed over the last
three months. Look for a breakout from this range for big movement: 10.50 up
and 8.60 down.
Daily Trading Signals
NYSE Chart of the Day
HW has gotten a huge downside
break from a clear triangle range at 24.00, which is highly bearish. Look for
continued overall weakness from this pattern.
Daily Trading Signals
Daily Market Commentary
Updated Tuesday, 11/7 for Wednesday's market.
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Key DOW Levels for 1187
|
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UP
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Above 12,200
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DN
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Below 12,000
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Steady Continuation...
- Dow reverses from major trend line, rallies steadily to the
Close. The index proceeded to trade sideways the remainder of the session and
is now holding just beneath key resistance at 12,200.
- The NASDAQ and S&P each rallied to early gains this morning, but fizzled
a bit to the Close. Each remains bullish after the current two-day advance, but
could be in a consolidation mode before another breakout is seen.
Summary
The Dow ended the day near the highs of the session after halting its advance
at 12,200. The index is now consolidating at the highs, which may persist ahead
of the next move. The index should remain near-term bullish above 12,100.
Read More...
