Info!! Indicator Review For May 19Th

Last week's indicator review highlighted the uneven sector functioning during the market's recent rebound from March lows. By Wednesday, I noted that the number of stocks making fresh annual highs had expanded, a sign of growing breadth to the rally. This forcefulness owed much to the midcap stocks (top nautical chart higher upward from a growing per centum of stocks are closing higher upward their 200-day moving averages; amid SPX issues, that per centum is right away 58%, upward from 15% at the March lows. On a shorter-term basis, 77% of S&P 500 large cap; 76% of S&P 400 mid cap; in addition to 64% of S&P 600 pocket-sized cap stocks are trading higher upward their 50-day moving averages, equally good indicating adept participation inwards the rally.

To move sure, sector variation is notwithstanding present, in addition to I volition review this inwards an upcoming post. Financial, airline, in addition to homebuilding stocks stay weak; unloose energy in addition to applied scientific discipline issues stay strong. Because of this uneven sector performance, I would non telephone outcry upward the advance-decline trouble for NYSE mutual stocks strong, but it did accomplish a post-March high this by week.

In general, these measures of forcefulness tend to pinnacle ahead of price, which suggests to me that--though nosotros may move due for simply about correction--we choose non seen the final of the rally next the double-bottom inwards January/March. I conk on to harbor doubts that this rally volition choose us meaning novel toll highs for the major averages. Rather, I encounter it equally a late, selective continuation of the bull bicycle that began inwards August, 2006. Some sectors (financials) choose probable seen their bull peaks; others (energy) are notwithstanding making them. If that conjecture is correct, the adept tidings is that nosotros should encounter farther toll forcefulness inwards the major averages into the summer. The bad tidings is that a to a greater extent than meaning acquit may prevarication beyond.
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Info!! Indicator Update For May 19Th

Last week's indicator review constitute that buyers continued to gibe the upper mitt inwards the market, alongside signs of bullish persuasion in addition to sector behavior. Since that time, nosotros did run across selling into the terminate of this past times week, taking most of the S&P 500 sectors into neutral trending territory. While novel 20-day lows exceeded novel highs on Midweek in addition to Thursday--the outset fourth dimension that has occurred since the March rally began--that province of affairs changed past times Friday, equally novel lows inwards the large cap indexes were non widely confirmed. With Monday's impressive rally, nosotros straight off stand upward inwards a broad trading hit defined past times concluding week's cost lows in addition to the bull deed highs.

We are tracing a designing of lower highs inwards the Cumulative Demand/Supply Index (top chart); 1 time those peaks are no longer accompanied past times fresh cost highs, nosotros volition bring a potential intermediate-term sell signal. Similarly, whatever tests of the bull highs that neglect to expand the pose out of stocks making fresh 65-day highs (middle chart) and/or neglect to brand novel highs inwards the advance-decline delineate of piece of occupation posted past times Decision Point (bottom chart) volition atomic number 82 me to await continued hit trading, rather than a resumption of the bull. Conversely, should nosotros run across expanded participation inwards a novel leg up, that would move a powerful sign of an ongoing bull market.

I am expecting concluding week's lows to gibe this week, equally merchandise volition probable croak quieter heading into the vacation weekend. Should nosotros interruption those lows across the major indexes, that would move a clear indication of fresh downside participation in addition to would virtually for certain plow the indicators bearish on an intermediate-term basis.

I volition move updating the indicators each morn prior to the marketplace opened upward via Twitter (follow here) in addition to volition move posting intraday marketplace updates to the spider web log equally fourth dimension permits.
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Info!! Indicator Update For October 19Th

Last week's indicator review institute that nosotros were seeing toll forcefulness inwards the major indexes, but signs of non-confirmations amid several indicators. This past times calendar week registered fresh toll highs, keeping most sectors inwards a bullish trending mode. Still, nosotros continued to come across non-confirmations amid the indicators. The Cumulative Demand/Supply Index (top chart) continues to register lower highs, indicating a loss of upside momentum.

We likewise are seeing fewer novel 20-day highs minus lows amid NYSE, NASDAQ, together with ASE stocks (middle chart), relative to the September levels. Similar readings are evident amid the 65-day novel high/low data. All of this suggests that participation to the upside has been to a greater extent than selective over time.

The advance/decline business information pigment a to a greater extent than mixed picture. We did register novel highs inwards the large cap indexes, including the A/D lines specific to the S&P 500 Index, the NASDAQ 100 Index, together with fifty-fifty NYSE mutual stocks. As the helpful nautical chart from Decision Point indicates (bottom), however, nosotros accept non seen similar novel highs inwards the A/D business specific to S&P 600 minor cap issues.

I proceed to stance this every bit a bull market. Note, for example, how pullbacks inwards the Cumulative DSI accept occurred at successively higher toll lows. Still, the indicators advise that nosotros may accept registered a momentum high inwards September, alongside recent toll highs coming on lower volume, lower momentum, together with reduced participation. If that is the case, I would await farther corrective activeness prior to whatsoever fresh bull leg.

I volition live on tracking marketplace momentum, trending, together with forcefulness each morn prior to the opened upwardly via Twitter. You tin follow the simply about recent 5 tweets on the weblog page nether "Twitter Trader" or you lot tin follow the stream of tweets (and subscribe gratis of accuse via RSS) past times going to my Twitter page.
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