The last failed rally set up, Red Heart One, occurred around the first of the month.
Like 2018 when the MFI tracks above the market is positive, and when it tracks below the market loses value. The A/D has lower highs and lower lows, although it is flat to upwardly biased in the longer term. OBV is stuck on the downtrend.
The rally has closed on purple gap, but the other one, like Red Heart One, may be elusive. A break at 380 lower would seal the deal. I would like to think Red Heart One still has some influence. The June consolidation had me fooled, volume dropped off which seemed like a nice setup for a low volume rally. The gaps lower did offer a silver lining to the cloud. They held out the offer to give this market rally a second chance.
The context of the October gaps and long wide turn back to close them sets up the possibility that this bear market may take it’s sweet time in forming a bottom. And yes November still waits out there.
There are twin peaks at the open confirmed and the money flows took them out horizontally. Then a drop along the blue line, “dog chasing car” and we need to see if the selling follows that line of descent or the money lifts us away from dangerous spinning tires. Remember money trumps every other card. Money is trump.