Info!! Indicator Update For February 7Th

Last week's indicator review suggested that nosotros were seeing an intermediate-term correction amongst weakening readings in addition to bearish intermarket themes. That has continued to locomote the illustration over the past times week, every bit we've retraced the marketplace position forcefulness of 2009's 4th quarter.

Technical strength, you lot volition recall, is a proprietary mensurate of short-term trending (top chart). Note how all viii S&P 500 sectors that I runway are inwards bearish trending mode, amongst surprisingly lilliputian variation amid them. Notice too how the sectors, every bit a whole accept been inwards a bearish style for the past times 3 trading weeks. This highlights the intermediate-term correction noted inwards before indicator posts.

Demand/Supply is a short-term mensurate of momentum, tracking the proportion of NYSE, NASDAQ, in addition to ASE stocks that closed higher upward vs. below the volatility envelopes surrounding their moving averages. It turns out that a cumulative meat of Demand/Supply (middle chart) serves every bit a useful overbought/oversold signal. We are clearly oversold, inwards territory that--in the recent past--has corresponded to intermediate term marketplace position bottom areas.

Finally, banking firm complaint the important expansion of fresh 20-day lows on Fri to good over 3000. We too saw a really important expansion of novel 65-day lows before bouncing higher on Fri on meaningful volume. That sets Fri every bit a candidate momentum depression day, which classically tin locomote followed past times subsequent tests of lows (typically amongst indicator in addition to sector divergences). Should nosotros fix such tests amongst those divergences, I would locomote strongly leaning toward buying this market. Until then, the weak indicators hold me from playing the long side for anything to a greater extent than than short-term bounces.
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