Last week's indicator review suggested that nosotros had lay inwards a momentum scope for the recent bull swing as well as that it would non survive surprising to meet a pullback prior to whatever farther toll highs. We did indeed line dorsum final week, taking virtually of the sectors out of their uptrends. This moved our momentum-based Cumulative Demand/Supply Index (top chart) into modestly oversold territory. Pullbacks inwards this mensurate lead maintain occurred at higher toll lows as well as lead maintain represented splendid intermediate-term entry points thence far.
We've too pulled dorsum inwards the publish of stocks registering 20-day highs minus lows (middle chart); these pullbacks lead maintain similarly occurred at higher toll lows since the March bottom as well as lead maintain represented splendid entry points. I await this pullback to survive no different, merely would revise that assessment should nosotros lead maintain out the early on September lows inwards this measure.
The bottom chart, from the splendid Decision Point site, shows that we've pulled dorsum inwards the advance-decline business specific to S&P 500 stocks. Note how the early on September lows inwards the A/D business represents of import support. As long equally nosotros concur inwards a higher house that level, I stance the longer-term uptrend equally intact; a motility below that grade would advise to a greater extent than pregnant distribution feature of intermediate-term topping.
I volition survive updating indicators each morn earlier the marketplace opened upwards via Twitter (follow here). At this point, nix has occurred to alter my stance that we're seeing a normal pullback next a momentum summit as well as should meet farther toll forcefulness earlier an outright deport swing takes hold.
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