This by week, nosotros broke to bull marketplace seat highs across nigh of the major U.S.A. stock marketplace seat indexes. Let's run into how our major indicators behaved:
TOP CHART: S&P 500 Sector Technical Strength - We saw pregnant improvement inward Technical Strength ( a proprietary mensurate of short-term trending) across the 8 sectors that I rail weekly, amongst specially notable gains amidst Materials, Health Care, too Technology shares. Interestingly, nosotros soundless run into neutral readings for 3 of the sectors. I volition last watching closely to run into if nosotros broaden the rally; authorities notation that tendency information for the handbasket of stocks that I follow are posted each forenoon prior to the marketplace seat closed via Twitter (follow here).
SECOND CHART FROM TOP: Cumulative Demand/Supply Index - We've broken to a multi-week high inward the cumulative DSI, which tracks the give away of stocks closing inward a higher house their volatility envelopes relative to those closing below. Note, however, that nosotros are non at all at levels that convey late corresponded to overbought; note, too, that nosotros tend to larn those overbought readings prior to cost peaks. This suggests that nosotros could convey significantly to a greater extent than room to larn to the upside early on inward 2010;
THIRD CHART FROM TOP: Here nosotros run into the give away of NYSE, NASDAQ, too ASE stocks trading at 65-day highs minus those closing at 65-day lows. This, too, has broken out to a multiweek high, but is non at levels that convey late corresponded to marketplace seat tops. As long equally nosotros run into novel highs expanding too exceeding novel lows, I consider the intermediate-term tendency to last intact to the upside.
BOTTOM CHART: Here nosotros run into ane of my favorite charts from Decision Point: it tracks the advance-decline business for NYSE mutual stocks only. Observe that it, too, has broken to a novel bull marketplace seat high, reflecting pull across smaller cap stocks equally good equally large caps. We demand to rest inward a higher house the advance/decline business levels from the by several months to sustain the uptrend.
In sum, we're seeing both higher prices too stronger indicator readings, suggesting that the upside intermission from the recent intermediate-term trading attain is legit. As long equally nosotros rest inward a higher house final week's lows, I'll last viewing this uptrend equally intact.
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