$ADP had been in a “Go” trend since early summer.
Price rallied quickly to highs at the end of July. We saw a Go Countertrend Correction Icon just after that high that indicated price may struggle to go higher in the short term. Since that time, price has moved mostly sideways finding resistance at that prior high and support from the gap on July 26th. Recently, as momentum waned we saw GoNoGo Oscillator fall to test the zero line from above. Throughout this “Go” trend, the oscillator has found support at zero but this last time we saw it fail to hold and broke down into negative territory. This told us that momentum was no longer in the direction of the “Go” trend. During this time GoNoGo Trend painted weaker aqua bars before giving way to several amber “Go Fish”, a period of uncertainty. Now, with momentum in negative territory, and volume heavy (dark blue of oscillator line), GoNoGo Trend has painted a first “NoGo” bar as price tests support. We will watch to see if this new trend continues and if price breaks down through support we will see a new low.
