Info!! Indicator Update For February 14Th

Last week's indicator review suggested that nosotros had seat inward a momentum depression inward the stock market, amongst possible tests of the lows to follow. We indeed run into follow-through weakness inward stocks this yesteryear week, precisely prices held inward a higher house 1050 inward the S&P 500 Index futures earlier nosotros shut the calendar week higher.

Note from the 20-day novel highs minus lows (top chart) that the dandy bulk of issues cause got pulled off their recent lows, amongst novel highs running roughly the orbit of novel lows. I piece of work a cumulative running total of novel highs minus lows every bit an intermediate-term tendency indicator. We require to run into an expansion of novel highs relative to lows to furnish us to an uptrend. Influenza A virus subtype H5N1 bounce amongst feeble novel high/low force would house us inward a designing of making lower toll highs next a pause of the December, 2009 lows. For that reason, I am reluctant to chase toll force that cannot force novel highs meaningfully inward a higher house lows.

At the same time, I volition live on watching closely for whatever pause below that 1050 expanse to run into if novel 20-day lows are expanding. Influenza A virus subtype H5N1 exam of that expanse amongst wide non-confirmations from sectors in addition to novel highs/lows would live on consistent amongst a bottoming procedure in addition to the designing of momentum lows followed yesteryear subsequent tests.

Note that, despite the recent bounce, the 8 S&P sectors that I follow weekly (middle chart) rest largely inward short-term downtrends according to my proprietary Technical Strength measure. Consumer-related sectors strengthened week-over-week, every bit did Energy stocks. Financial in addition to Industrial shares rest relatively weak. Once again, I require to run into sectors display positive Technical Strength earlier trusting marketplace position bounces in addition to committing to the long side.

Finally, if y'all cause got a hold off at the advance-decline employment specific to NYSE mutual stocks--a really useful perspective from Decision Point--we honor that nosotros have, indeed, done technical harm to the stock marketplace position during the recent decline. Moreover, the recent bounce has non added important advance-decline force to the market. I am watching the October/November lows inward this indicator really closely; a pause of those would propose a continuation of an intermediate-term downtrend.

In all, we've seen a bounce off apparent momentum lows, precisely no resumption of bullish marketplace position action. The recent marketplace position demeanour is consistent amongst a bottoming procedure in addition to an intermediate-term correction inward an ongoing bull market. I am watching the indicators closely, however, for signs that the correction could deepen inward the wake of troubling tidings from Europe, Dubai, in addition to Red People's Republic of China in addition to continued saber-rattling inward the Middle East.
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