[badcharts]

Hi,

If I can add, revisiting Stan's stage analysis framework, and going through many charts, volume is a critical health indicator of a healthy breakout and a healthy pullback.

Stan looks for contracting volume on pullbacks.

If I am in a trade and it pulls back on contracting volume, my confidence level is high.

If it pulls back on huge volume, it is time to take a very close look for an exit signal.

The qqq chart attached show increased volume on last couple pullbacks.. with much lighter volume on retrace to previous highs. That is a warning sign.


Regards,
Patrick

I'm curious about the Nasdaq. Still managed to make a new high 2 weeks ago and the new-high / new-low seems somewhat positive. It's the only index still above it's 30week MA.

For me, the failed continuation breakout in the Nasdaq was one of the key signals that we were now in Stage 3, and not just a standard correction. As it has been the strongest index for years. So was significant for me that it's breakout failed.

The divergence in the new highs - new lows is one of the few positives currently in the breadth. However, another way of looking at it is that the February breakdowns were so sharp, that it defined the Stage 4A breakdown levels for most stocks. So with some of the key indexes like the S&P 500 approaching the February lows again, we could see a pick up in the new lows again - which would mean Stage 4A breadown attempts if it does. So we are at a critical point imo, and will be interesting to see which way it goes.

Here's some candleglance charts of the major US Indexes, International Indexes and the Dow stocks. As I think it helps to look at a snapshot like this, as gives a broad view.