Mixed Market Signals
Generally, I find that all of the Indexes move in the same directions including their O/B & O/S conditions usually about 90% of the time or so. But in times when the Dow hits an all time high (High since 2000), and the NASDAQ has only recovered about half of it's descent from 5,000 in 2000, strange things can happen.
At today's open, the Dow and NASDAQ took off in different directions. The INDU became O/S at 10:15 (ET-NY) through 11:45 (ET) and then got in line with the NASDAQ w/both going in the same direction. On the other hand NASDAQ was O/B right from the open until 11:20 and indicated a short. But the NAS only fell 2 bars and continued in an upward trend. By 11:45 (ET) both INDU & NAS MACCI joined and continued the rest of the day together (lets say they were both obedient by this time, not naughty as they were at open - LOL).
So I noticed this today, and added a Line Chart of both the INDU & NASDAQ superimposed upon each other on a 5 min. chart to observe during the day (including superimposing both MACCI's). Grey1's strategies are really simple, by following his guidance of the top down approach. Therefore, today I started off watching the Indexes to see when I would find an O/B or O/S condition by my indicators. But today, I was a bit shocked, so I watched my charts much more carefully. Fortunately for today, I used my Gap Open strategy and went long on EZPW at 10:08 (ET) for + 0.17, not much, but I was not finding the Indexes showing any clarity - at least to me at the time.
So I don't want to start any debates on which Index to follow, I just added one 5 min chart to keep me aware of any Index Divergence, and that's it. See the 2 attached 5 & 10 Min charts. I showed both 5 & 10 Min charts, but kept only the 5 min in my platform for trading awareness.
Hope This Helps!
NAS
