Last week's indicator review establish that "As long equally novel lows overstep novel highs, nosotros conduct keep to expect at this equally a potential tendency shift that could conduct keep us good into May's trading range." We did, indeed, encounter those novel 20-day lows cash inwards one's chips along to outpace novel highs, taking us briefly below 900 inwards the S&P 500 Index earlier bouncing higher belatedly inwards the week.
The bullish momentum that nosotros saw sustained from the March lows (top chart) has been lost, a province of affairs that ordinarily occurs during topping processes. New 65-day highs, which peaked early on inwards June, conduct keep steadily declined since in addition to then in addition to forthwith stand upward barely higher than novel lows (middle chart). Meanwhile, the advance-decline business specific to S&P 500 stocks--a swell characteristic from a bulk of S&P 500 sectors retreating from their bullish trending status, nosotros forthwith stand upward inwards a wide trading arrive at betwixt May's lows in addition to June's highs. At this juncture, given the relative forcefulness of NYSE Cumulative TICK in addition to intermediate-term novel highs/lows, I encounter this to a greater extent than equally a correction inside a bull marketplace position deed than equally the showtime of a fresh deport market. Influenza A virus subtype H5N1 deed below May lows, especially accompanied yesteryear novel 65-day lows exceeding novel highs, would Pb me to re-evaluate that stance.
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