Info!! Indicator Update For March 22Nd

we saw excessive bullish sentiment only likewise considerable strength alongside the indicators. Last week's update noted that the bull marketplace position was all the same inward force, only that nosotros had lost upside momentum in addition to could meet a breather inward the persistent rise. On Fri nosotros got that breather, in addition to cost weakness continues into premarket trading on Mon equally I write this.

The sectors that I runway each calendar week for Technical Strength (a proprietary stair out of short-term trending) remain inward bullish way (top chart), with the exception of Materials shares, which savage dorsum to neutral amidst belatedly calendar week commodity selling.

The Cumulative Demand/Supply Index (DSI; 2nd nautical chart from top), which tracks marketplace position momentum did indeed tiptop out ahead of cost equally is unremarkably the case, only remains to a higher house zero. In a solid bull trend, nosotros tin brand fresh bull highs on successively lower DSI readings; that is my expectation equally long equally stocks tin remain to a higher house their Jan highs in addition to sustain their upside breakout.

We likewise saw 20-day novel highs minus lows (second nautical chart from bottom) tiptop out ahead of the marketplace position in addition to push clitoris dorsum on Friday. Fri was the commencement solar daytime inward which nosotros began to meet an expansion of 20-day novel lows, equally I posted this morn to Twitter. I volition move watching this stair out closely. Should nosotros dice on to sustain expanded novel lows fifty-fifty on a motility dorsum toward bull highs, I would start out thinking of an intermediate-term topping process.

My proprietary stair out of stock marketplace position momentum (bottom chart) likewise topped out ahead of price, only remains a chip to a higher house its neutral degree of 1.0 in addition to is non yet at levels that accept characterized recent short-term marketplace position bottoms. Indeed, with over 70% of stocks all the same trading to a higher house their 20-day moving averages, nosotros are nowhere nigh oversold levels that accept characterized recent intermediate-term bottoms.

In sum, nosotros accept seen an unusually persistent motility to novel bull highs, confirmed past times such indicators equally advance/decline lines in addition to novel highs/lows. In the wake of weakening upside momentum, we're immediately seeing a pullback inward stocks that is taking us off what could good move the momentum highs. I aspect that nosotros accept non seen actual cost highs for this move, which agency that nosotros should meet a buying chance when the electrical flow correction runs its course. I would move peculiarly bullish if nosotros tin gibe the 1130-area back upward inward the ES futures. H5N1 real meaning expansion of 20-day novel lows during this corrective motility would plough my upside expectations much to a greater extent than cautious.
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Info!! Indicator Update For June 22Nd

Last week's indicator review establish that "As long equally novel lows overstep novel highs, nosotros conduct keep to expect at this equally a potential tendency shift that could conduct keep us good into May's trading range." We did, indeed, encounter those novel 20-day lows cash inwards one's chips along to outpace novel highs, taking us briefly below 900 inwards the S&P 500 Index earlier bouncing higher belatedly inwards the week.

The bullish momentum that nosotros saw sustained from the March lows (top chart) has been lost, a province of affairs that ordinarily occurs during topping processes. New 65-day highs, which peaked early on inwards June, conduct keep steadily declined since in addition to then in addition to forthwith stand upward barely higher than novel lows (middle chart). Meanwhile, the advance-decline business specific to S&P 500 stocks--a swell characteristic from a bulk of S&P 500 sectors retreating from their bullish trending status, nosotros forthwith stand upward inwards a wide trading arrive at betwixt May's lows in addition to June's highs. At this juncture, given the relative forcefulness of NYSE Cumulative TICK in addition to intermediate-term novel highs/lows, I encounter this to a greater extent than equally a correction inside a bull marketplace position deed than equally the showtime of a fresh deport market. Influenza A virus subtype H5N1 deed below May lows, especially accompanied yesteryear novel 65-day lows exceeding novel highs, would Pb me to re-evaluate that stance.

Daily updates of the indicators volition cash inwards one's chips along to endure posted prior to the marketplace position opened upward via Twitter. Readers tin subscribe to the tweets gratuitous of accuse via RSS or tin persuasion the latest 5 tweets on the weblog page nether "Twitter Trader".
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