Hi Everyone
The major indices tried to get going positively today and got pegged back.
Here is the previous day’s OVI chart for the S&P (today’s is still being calculated as I write this note):
Similar to the other indices, the OVI is negative and has been in virtually uninterrupted since April 26, which happened to be the high of this market. Price action is forming a tight double bottom which again is reflected in many of the major stocks.
GS (Goldman Sachs)
Always worth remembering that the financial stocks often lead the way so I’ll be keeping a close lookout at stocks like GS, both in terms of price action and its OVI.
So, what now?
Well, as I said very recently, if you’re trading our preferred style you must be patient for the breakout – this would be a downside breakout right now. There are no guarantees this will happen, but you want to be ready if it does. Ideally we’ll form another nice bear flag and with the OVI negative we’ll have another breakout trade to the downside. That would be an easy trade.
To learn more and have access to the OVI visit my Private Traders Club area.
Regards
Guy