Interdum stultus opportuna loquitur...

Thursday, August 04, 2005

SleeplessRant: US Indices Showing Buy Divergence...

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2:11 a.m.... Can't sleep thanks to the fact that my entire chest has been possessed by some sort of snot-demon.

Still, there are compensations - like the divergence that has just formed on the major index charts.

Four bars makes a swing, and the swing low just achieved on the Dow and S&P - coupled with overbought %R and CCI divergence - sets up a lovely little short-term buy.

I can't bring myself to put up a chart just now, but I wil refer you to this post in the normal USRant later this morning.

I will try not to screw up the distinction between overbought and oversold like I did in the paragraph above. Obviously if it's a buy divergence, the %R must be oversold (which it is). Snot on the brain, perhaps...