Follow through

sp0719.gifStocks had some follow through today, as did gold. The Nasdaq gapped up and remained up a bit but closed poorly. If down on Friday it could leave a nasty looking upthrust on the chart. The S&P ETF on the chart to the left several small upthrusts that rejected prices, with three of the candles closing lower than the open. There was a bounce up from support yesterday with much of the loss recovering near the close. While the market closed up the pattern looks a bit ominous. There is also quite a divergence between the push up in prices and the advance decline line that is in the bottom subgraph. I still have to assume the trend is up, but with some warning flags. If the market takes out the highs then these warning flags will be negated. If we take out the low of yesterday then it might be time for a correction. Those are the two reference points for now.

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