Yesterday, we said "The circle red area is where the TICK and TRIN reached extreme panic levels, which are where bottoms form. We labeled these areas with the blue TICK close reading first and blue TRIN close readings second. The panic readings both in TICK and TRIN occurred around the 335-340 ranges, suggesting this area has strong support. Three panic days in the same area within three weeks is a build up for strong rally that may start this week. Today's decline did produce high volume and most high volume lows are tested." Today the TICK closed at -411 and the TRIN at 1.32, which is another bullish combination. There is still a possibility that yesterday's high volume low could be tested before the market heads higher. Still looks bullish.
The middle window is the NYSE Down Volume/NYSE Up Volume; when this ratio reaches > 9/1, it's considered a Major Distribution Day, or "MADD". Going back to April, MADD marked short-term lows. It's also worth noting that most MADD lows were tested before market headed higher. Not sure yesterday's low will be tested or not tested, but, either way, a low in the market appears to be forming here. We also had the TICK and TRIN reach panic levels yesterday and today, which is a condition that appears near lows.
Above is the weekly GDX chart with its RSI in the top window. This indicator looks at the intermediate-term for GDX. Bullish Intermediate-term trends occur when the weekly RSI for GDX is above 50 (current reading is 53.50). GDX has been consolidating since early August. The consolidation has been choppy with decreasing volume, which is the norm on consolidation patterns. The next impulse wave is not far off; the Bollinger bands for the GDX/GLD ratio are narrowing, suggesting a large move is not far off. Another rise in GDX should start soon and should last into the new year. Long GDX on 10/9/20 at 40.78.
Tim Ord,
Editor
www.ord-oracle.com. New Book release "The Secret Science of Price and Volume" by Timothy Ord, buy at www.Amazon.com.
