Info!! Indicator Update For March 31St

Last week's indicator update concluded, "I would non survive surprised to run into consolidation next the rigid toll ascent off the early on March lows. That consolidation should survive relatively apartment if we're going to sustain closed to other leg upward." Since that time, nosotros did run into farther forcefulness inwards the rally concluding week, followed past times consolidation that took us beneath the 800 grade inwards the S&P 500 futures.

The to a higher house charts exhibit where nosotros stood equally of Friday's close, in addition to nosotros tin laissez passer on the axe run into the double operate past times inwards novel 20-day highs minus lows (bottom chart), fifty-fifty equally toll had moved higher inwards the large caps. We tin laissez passer on the axe also run into from the Cumulative Demand/Supply Index (top chart; a cumulative index of the release of stocks closing to a higher house versus below their short-term volatility envelopes) that nosotros are at real overbought levels.

As I've stressed for several weeks now, these peaks inwards the Cumulative DSI (which is my preferred overbought/oversold measure) convey occurred at successively lower toll highs, which is feature of longer-term ship trends. We involve to run into an expansion of 20-day novel highs in addition to an mightiness to concur the 800 grade inwards the S&P 500 Index on pullbacks earlier nosotros tin laissez passer on the axe conclude that the electrical flow rally is something to a greater extent than than a trigger-happy ship marketplace bounce.

To this point, rallies to a higher house 800 convey been met alongside rigid selling, equally nosotros saw belatedly inwards today's session. Should nosotros run into lower toll highs on bounces inwards the Demand/Supply Index or should nosotros run into fewer novel highs (and specially to a greater extent than 20-day lows) on bounces, I would survive looking for a deeper correction into the wide trading arrive at defined past times concluding week's highs in addition to the ship marketplace lows. As always, I volition survive tracking Demand/Supply in addition to novel highs/lows daily via Twitter.
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