Friday, June 17, 2011

Reversal of Sentiment, Reversal of Direction

Sentiment reversal: hard, fast uptrend, slow downtrend
This 15-minute chart shows just the opposite of yesterday. It illustrates that market sentiment has shifted. On the left side, the green candles moving higher are strong and fast. The red candles on the right are choppy, sloppy and interspersed with green candles, moving downward at a pace that is without conviction. The market has become bullish despite the current downward direction at the moment. I suspect we'll see another reversal somewhere near the flat line, and a higher close.
This surprises me despite that on the daily chart, the trend is still weakly downward  and despite that the news continues to reflect increasing economic weakness.