Market Timing Charts Revisited -- as of Friday Close, February 5th, 2010

Fari Hamzei

I had one of the greatest trading weeks in a while.  IMHO, more than once, I got very lucky.  These charts & comments were posted earlier today on our Open Twitter Feed ( http://twitter.com/hamzeianalytics ).

Let's start with our Timer Chart.

Notice the "Hammer" candlesticks with very low McClellan Oscillators readings after down/up volume ratio spike day (Thursday).  And both CIs are GREEN with NAZZ's having a flat slope -- most likely Monday will be an UP day IMHO.  Also worth noting is that SPX bounced off of MS1 (monthly support one) while trading below -2 sigma during Friday RTH.

Above is Vol of the Vols Chart with an intraday spike of VXO to +3sigma and VXN to +2sigma.  It was nothing out of ordinary, when we take into account the intraday volatility and range of the preceding few sessions and then Friday being Jan NFP (historically a high risk/high reward trading day).

Our coveted SP1_MoMo Chart: when we look carefully, we see a weak bullish divergence here between MoMo vs SP1, further vouching for a small dead cat bounce here.

% of SPX Components above their respective 200 Day MAs in the chart above is sinking fast. IMHO, for now, the PATH OF LEAST RESISTANCE is **DOWN**.

See you all in the morning - bright and early -- Go Saints Go !!