Info!! Indicator Update For February 21St

Last week's indicator review observed that nosotros had a bounce off momentum lows, exactly no resumption of bullish marketplace action. That changed significantly this by week, every bit nosotros failed to get got out the prior week's lows in addition to rallied higher through the week.

Sector Technical Strength (a proprietary, short-term mensurate of trending) turned bullish across some of the sectors (top chart), amongst notable week-over-week forcefulness amid Industrial, Materials, Consumer Discretionary, in addition to Financial shares. Follow-through volition live on of import to sustaining the upside trend; fifty-fifty relatively pocket-size weakness would plough 4 of the 8 sectors to neutral trending status.

We tin likewise run across the abrupt advance inwards the Cumulative Demand/Supply Index (second nautical chart from the top), which has rallied steadily from its lows. Such abrupt rallies get got historically led to farther toll forcefulness 20-days out, every bit upside momentum inwards the Index typically precedes toll peaks.

Our 2d nautical chart from the bottom shows that 20-day novel highs are 1 time once to a greater extent than handily outnumbering novel lows; this inwards business office reflects really company forcefulness amid little cap issues. Despite early on weakness on Fri owing to the Fed news, nosotros registered a fresh weekly high inwards the number of shares making 20-day peaks. That indicator has non been losing steam.

Finally, the helpful nautical chart from Decision Point at bottom shows that we've seen odd recent advance/decline forcefulness amid the little cap issues comprising the S&P 600 Index. Indeed, the advance-decline describe of piece of job specific to the little caps is dorsum close its bull highs. I would persuasion a clear pause of this indicator to novel highs to live on a bullish development.

In all, I am watching the indicators closely to run across if nosotros stall out in addition to brand a lower transcend some electrical current levels vs. choke on forcefulness in addition to exam the bull highs across the major indexes. I emphasized inwards final week's review that nosotros were seeing an intermediate-term correction inwards an ongoing bull market. This by week's activeness is consistent amongst that perspective.
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