Info!! Indicator Update For February 23Rd

Last week's indicator update establish sector as well as indicator weakness, simply stressed that nosotros were non at an oversold grade as well as remained inwards a wide, choppy trading range. With the interruption of the 800 grade inwards the S&P 500 Index early on inwards the week, nosotros moved below that attain as well as stayed below for the week. That brought the Cumulative Demand/Supply Index (top chart) into oversold territory, though non at that -30 grade that has marked recent intermediate-term marketplace bottoms. The weakness has been broad, extending across all sectors, suggesting that the acquit marketplace remains intact every bit long every bit nosotros rest below the prior, extended trading attain mentioned above.

Another indication of the breadth of the marketplace weakness is the expansion of stocks making fresh 20-day lows across the NYSE, NASDAQ, as well as ASE (middle chart). We are seeing fewer novel lows on a 52-week dry reason than nosotros saw slow inwards 2008, as well as non all sectors convey seen fresh acquit marketplace cost lows. Similarly, field nosotros were notably weak inwards Cumulative NYSE TICK this by calendar week (bottom chart), nosotros remain higher upward the Nov lows. The same is truthful for the advance-decline lines specific to NYSE mutual stocks as well as S&P 500 issues. These divergences would popular off much to a greater extent than of import inwards my estimation should nosotros sustain a broad rally that keeps the S&P 500 marketplace higher upward its violated back upward at that 800 level.

As I emphasized the concluding distich of weeks, the peaks inwards the Cumulative Demand/Supply index convey occurred at successively lower cost highs; each rally inwards this acquit marketplace has failed to surmount the 1 previous. As long every bit that is the case, as well as specially every bit long every bit we're seeing weakening Cumulative TICK as well as expanding novel lows, it is premature to live pounding the tabular array on the long side.

I convey posted the daily as well as weekly SPY target levels to Twitter (free subscription via RSS) as well as volition update the indicators each morning time prior to the marketplace open. The market's relative volume--how electrical flow book compares to the average book for that detail fourth dimension of day--is really helpful inwards gauging marketplace volatility as well as the odds of hitting these targets. The relative book norms for this week's S&P 500 e-mini marketplace look below:

8:30 - 234,993 (62,792)
9:00 - 199,589 (48,899)
9:30 - 152,938 (48,688)
10:00 - 136,174 (65,293)
10:30 - 117,904 (59,114)
11:00 - 104,818 (40,222)
11:30 - 90,351 (33,155)
12 due north - 110,937 (37,560)
12:30 - 121,941 (46,688)
1:00 - 125,444 (58,883)
1:30 - 140,481 (61,592)
2:00 - 175,042 (50,129)
2:30 - 230,477 (84,999)
3:00 (15 instant period) - 99,318 (25,438)

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