Last week's indicator review concluded that "we convey been quite weak, nosotros are at oversold levels that convey corresponded to intermediate-term rallies, but as well as then far the indicators are inward clear acquit marketplace modes." We did indeed come across such a rally, as well as similar a shot the cardinal inquiry is whether or non nosotros convey exited the acquit marketplace mode. While advancing stocks clearly led decliners for the week as well as the vast bulk of issues rose from their acquit lows, markets proceed to anticipate deflation as well as recession. My Technical Strength measures exhibit sectors inward solely little uptrends, as well as coin menstruum for Dow stocks on the calendar week was solely modestly positive.
The Cumulative Demand/Supply Indicator (top chart) moved to neutral levels during the week; it is non around overbought levels that convey late corresponded to intermediate-term marketplace tops. New 65-day highs as well as lows (middle chart) detect relatively few novel highs (only 34 issues made 65-day highs on Friday), but far fewer novel lows than final calendar week (only 68 stocks registered fresh 65-day lows on Friday). When nosotros human face at 20-day highs as well as lows, these stalled out on Friday; nosotros had 304 novel 20-day highs against 120 lows. This depression rate of novel highs suggests that the marketplace rally of the past times calendar week has non yet been able to house stocks inward intermediate-term uptrends.
The rally was accompanied past times important buying interest, every bit the Cumulative NYSE TICK (bottom chart) rose through the week. Note, however, that the Cumulative TICK employment remains below its recent Nov peak, which is too the illustration for the advance-decline lines as well as the Cumulative Demand/Supply Index. In short, piece the rally has been substantial, nosotros proceed to come across a blueprint of lower highs as well as lower lows inward the stock market. If nosotros cannot sustain novel 20-day highs exceeding novel lows inward the coming week, I volition human face a examination of recent marketplace lows. I would human face at a sustained interruption higher upward 900 inward the ES futures every bit intermediate-term bullish for stocks, specially if accompanied past times a meaningful expansion inward the number of issues making fresh novel highs.
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