Tuesday, June 17, 2014
6:29 AM
Once again, the NASDAQ closed near the upper end of its daily range at 81.13%. The NASDAQ Composite seems to be gaining some upside momentum because the low of the day did not challenge the lows from the prior two days. Also, the Force Index 13 day indicator is showing some upside momentum. Even though volume was lighter than the previous two days, the spread of the candle from the open to the close was .4% indicating that the Bulls were in control by the end of the day.

The NASDAQ Composite is currently forming what could be classified as a Darvas Box. If you look closely at the candles within the box you’ll see that the index closed in the upper portion of its daily trading range six out of seven days. Last Thursday, the day when the long red candle formed, buyers stepped in at the end of the day to prevent the candle from closing below the gap established a week earlier. This may seem like nitpicking, but it is showing us that bullish sentiment prevails each day, or at least six out of the last seven days, by the close. You won’t get this information by looking at an indicator, you must look at the individual candles and the volume.

Today, in the stocks and groups moving up and down tight pie charts I combined both SmartGroups both up and down. This is something I figured out last week and is the subject for this month’s newsletter and Roundtable which we are holding today. By combining the Smart Groups we get a better feel for group rotation. Today, there was very little overlap between the two groups because by combining the upside groups I finished with 191 stocks. This means there were only nine duplicate stocks out of the 200 from both groups. The downside number is 181, so there were only 19 duplicates. By combining the groups, we now get a better feel for rotation in both higher-priced and lower-priced stocks.

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