NYSE - Strong OVB

In the last few sessions until Friday (January 8), there were tug-of -war between sellers and buyers with Dow managed to stay above the short-term upper resistance line.

Dow remains somewhere within the wave 7 with a side way but with upside bias movement. Candlesticks might indicate a tug-of war scenario but OBV is telling a different story.

OBV indicates strong accumulation of stocks since early December 2009. I would like to interpret this as a slow accumulation of stocks without aggressive chasing of stocks. If the saying that 'volume precedes price movement' is true than it is a matter of time before Dow starts to move up strongly.

When Dow starts to run, Hong Kong, Singapore and European markets are expected to follow except Bursa Malaysia where the issue of 'God' has turned from bad to worst. Those with the christian faith, looking at the burnt down church, may decide to sell and get out and put their money in countries where the God's followers do not resort to aggression in the name of 'God'.