Info!! Indicator Update For September 15Th

Last week's indicator update noted increasing marketplace position weakness, simply also divergences relative to July's lows. That subject continued this by week, equally nosotros maintained a modestly oversold status inward the Cumulative Demand/Supply Indicator (top chart) in addition to expanded the reveal of stocks making novel 65-day lows vs. highs (middle chart), simply kept novel lows good inward a higher house the levels recorded inward mid-July. Similarly, the Cumulative NYSE TICK continued to weaken during the calendar week (bottom chart), simply remained inward a higher house its July lows.

Interestingly, though nosotros are non far off 52-week lows inward the NYSE Composite Index, a reveal of S&P sectors exhibit surprising strength, including the financials. This strength is reflected inward the advance-decline work specific to the mutual stocks inward the NYSE Composite Index, which remains inward a higher house its July lows. Still, amongst all of these intimations of divergences, the fact remains that money does non appear to live on flowing into stocks; the bouts of buying that we've seen appear to live on short-covering in addition to sector reallocations, non fresh uppercase moving into equities. Combined amongst the weak NYSE TICK, it hence appears that sellers snuff it on to keep the upper manus inward this market.

As my weekend Twitter posts bring noted, this morning's marketplace position is poised to opened upward rattling sharply lower on the heels of intelligence regarding LEH's bankruptcy in addition to a forced merger of MER. We'll hence live on testing the mid-July lows inward the S&P 500 Index in addition to pose roughly of those seeming divergences to the test. Equity put/call ratios are non yet at levels commonly associated amongst marketplace position panic; nor bring nosotros seen the 30+ VIX levels that bring typified recent intermediate-term bottoms. Note, too, that the Cumulative DSI (top chart) is non yet at oversold levels commonly associated amongst intermediate-term bottoms. If nosotros tin hitting those levels in addition to retain the aforementioned divergences, I volition live on looking at the July/August catamenia equally a unmarried bottoming process. I'll involve to encounter buyers snuff it to a greater extent than aggressive--in the NYSE TICK in addition to coin flow--to human activity on such a scenario, however.
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