the advance-decline trouble for NYSE mutual stocks, which has been making fresh deportment marketplace lows through the yesteryear week, also equally yesteryear the persistently weak coin flows for the Dow industrial stocks. As I noted during the week, 38 of the xl stocks I follow inwards my handbasket of highly weighted S&P 500 stocks across viii sectors are trading inwards downtrends based upon my Technical Strength measure. This is non what I'd hold off for inwards a marketplace inwards which selling is drying up.
To hold upwards sure, the divulge of stocks making novel lows vs. highs (top chart) were lower this yesteryear calendar week than 2 weeks previous. Still, this divulge is quite elevated. For example, weakness inwards the corporate bond market, peculiarly inwards the high-yield sector. This is important, because the electrical current crisis is get-go as well as inaugural of all a credit marketplace final result that has spilled over into the wide economic scheme as well as affected stocks. As long equally the credit markets boot the bucket on to brand novel lows, it volition hold upwards hard to sustain a bull deed inwards stocks. I am watching several marketplace themes--corporate fixed income weakness, Treasury strength, U.S.A. dollar as well as yen strength, as well as commodity weakness--as a fashion of assessing probable moves inwards stocks. We'll demand to come across a reversal inwards those themes to start whatever variety of bottoming inwards stocks.
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