Info!! Indicator Update For January 31St

Last week's indicator review institute a marketplace inward oversold condition, precisely cautioned against catching falling knives given the steady weakness. That proved to move worthwhile counsel, every bit the weak marketplace became weaker during this yesteryear week.

We tin hand the sack come across from the Technical Strength (a proprietary short-term mensurate of trending) of the 8 S&P 500 sectors that I rail weekly (top chart) that the sectors remain inward bearish mode, with the exception of Industrial stocks, which are inward neutral territory. Other than the Industrial shares, the sectors that are relatively stronger are the to a greater extent than defensive Consumer Staples together with Health Care names. Energy together with raw Materials stocks remain weak, given commodity weakness, together with Technology shares were notably weak. Financial stocks showed the greatest arrive at over the week, albeit from a really bearish tendency seat the calendar week prior.

My Cumulative Demand/Supply Index (second nautical chart from top), which tracks the momentum of stocks across the NYSE, NASDAQ, together with ASE, is inward oversold territory that, inward the past, has led to pregnant marketplace bounces. Such bounces tend to final to a greater extent than than i day, together with thus at the start out indication of Demand/Supply strength, I would move tempted to play the long side. In 2008, this indicator stayed oversold for an extended period, fifty-fifty every bit the marketplace drove lower; that is argue in i lawsuit once again to non select grip of falling knives together with await for Demand forcefulness to signal sustainable buying interest.

We tin hand the sack likewise come across that 20-day novel highs minus lows (second nautical chart from bottom) conduct maintain remained skewed to the negative side for the yesteryear week. Interestingly, 65-day lows expanded throughout the week. Normally, an elevated break of novel lows volition convey inward buying interest, if solely because of brusk covering. That has non happened to this point, in i lawsuit again warranting caution almost those falling knives.

Finally, the Decision Point nautical chart of the advance/decline describe of piece of job for NYSE mutual stocks (bottom chart) shows continued weakness throughout the yesteryear week. I am watching to come across if the Oct lows tin hand the sack concur inward the A/D line, every bit good every bit inward the NYSE Composite Index. Thus far, we're non seeing whatsoever bottoming procedure inward the advance/decline numbers.

All inward all, this is clearly to a greater extent than than a short-term correction, every bit we've taken out lows from Nov together with Dec together with come across short-term weakness followed yesteryear continued weakness. Intermarket themes with currencies together with commodities conduct maintain tracked the bearish stock marketplace action; I involve to come across a shift inward those themes earlier taking the long side for anything to a greater extent than than an intraday bounce.
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