Info!! Indicator Update For July 6Th

Last week's indicator review institute that nosotros were trading inward a wide trading range, amongst farther weakness likely. We did indeed encounter that weakness belatedly inward the holiday-shortened weak, every bit the S&P 500 sectors turned bearish in addition to 20-day novel lows i time once again jumped ahead of novel highs. With downside momentum strong, farther cost weakness tin forcefulness out endure expected this coming week, which would select us testing the June cost lows at the depression terminate of the market's extended trading range.

Interestingly, our cumulative Demand/Supply Index (top chart) is solely nigh its aught level, indicating that nosotros are non nevertheless at intermediate-term oversold levels. Similarly, 65-day highs popular off along to outnumber 65-day lows (middle chart) in addition to stay stronger than at the June lows.

One argue that the indicators select held upward reasonably good into the recent weakness tin forcefulness out endure seen inward the advance-decline trace of piece of occupation for NYSE mutual stocks only, a really useful nautical chart posted past times Decision Point. We stay good off the June lows for the A/D line, raising the interesting possibility of a non-confirmation should nosotros dip below the June cost lows inward the major averages.

Quite a few marketplace participants are focusing on the seeming head-and-shoulders designing inward the S&P 500 Index since May's highs. Influenza A virus subtype H5N1 suspension of the May/June neckline would no doubtfulness convey sellers to the fore. It's at that indicate that nosotros would encounter if this is to a greater extent than than a shallow correction of the strength we've seen inward stocks since March. From the acre of the indicators at present, it's non clear to me that we're virtually to come inward a prolonged behavior phase. As always, though, I'll endure tracking the indicators daily earlier the marketplace opened upward via Twitter (follow here) to justice marketplace strengthening in addition to weakening.
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