Info!! Indicator Update For January 24Th

Last week's indicator review institute that nosotros had fallen into a make later starting the twelvemonth on a bullish note. With the stock marketplace refuse belatedly this by week, we've forthwith come upward total circle in addition to retraced the novel year's strength, falling dorsum into a multi-month trading range.

A major lawsuit going forwards volition live on whether stocks tin concur to a higher house their November/December lows. Thus far, nosotros bring non seen an explosion of novel 65-day lows, fifty-fifty though 20-day lows rose to over 2000 across the NYSE, NASDAQ, in addition to ASE (top chart). Should nosotros come across a meaningful expansion of 65-day lows, that would state me that we're inwards an intermediate-term corrective style in addition to could revisit the Oct lows.

We bring dropped to the indicate inwards my Cumulative Demand/Supply Index (second nautical chart from top) in addition to momentum mensurate (second nautical chart from bottom) where nosotros commonly hold off to come across a marketplace bounce. I volition live on watching closely for the vigor of that bounce; if it is non strong, I'd hold off at the real to the lowest degree a examination of momentum lows.

Meanwhile, the sectors (bottom chart) are trading inwards short-term downtrends according to my proprietary mensurate of Technical Strength. The i exception is Health Care, which is soundless inwards a neutral mode. We saw especially bearish swings inwards the concluding calendar week inwards Industrial in addition to Technology shares; the commodity-related Materials in addition to Energy stocks were too weak.

All inwards all, we're extended to the downside, exactly amongst all indicators weakening, I'm non looking to grab falling knives. Should nosotros stabilize roughly the November/December lows in addition to start to come across some firming of the indicators, I would live on treating this every bit a longer-term trading make in addition to looking for areas to live on buying. Until nosotros come across fewer stocks making 20-day lows, however, in addition to improvement inwards the Demand/Supply numbers, it is premature to human activity on that idea.
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