Info!! Indicator Update For September 22Nd

the end indicator review, I stressed a dual perspective: increasing short-term weakness amidst the indicators, but continued divergences relative to the July lows. By Tuesday, this duality was together with then hitting that I indicated, "I'm trading similar a bear, but watching for investment opportunities similar a bull." Indeed, nosotros continued to merchandise lower into Th morning--all the spell maintaining the divergences--until a dramatic outburst of buying, sparked past times intelligence of a regime rescue excogitation for troubled banks, moved the markets sharply higher.

As a number of the buying burst, the Cumulative Demand/Supply Index (which has been my best intermediate-term timing measure; superlative chart) moved from an oversold degree below -30 to a modestly positive level. New 65 24-hour interval highs minus lows (middle chart) turned dramatically positive alongside the rising afterward too failing to confirm its July lows. With over 2000 stocks across the NYSE, ASE, together with NASDAQ making fresh 20-day highs on Friday, it was clear that a large number of issues participated inwards the marketplace strength.

This wide participation was too evident inwards the positive coin menses numbers for Th together with Friday, every bit good every bit the reversal of weakness inwards the Cumulative NYSE TICK (bottom chart). Buyers clearly held the upper manus inwards the wake of the proclamation of the rescue. In spite of that, sector functioning was uneven, suggesting that much of the effort may bring been frantic brusk roofing together with sector reallocation. I volition endure watching the daily Cumulative TICK together with coin menses numbers carefully to assess whether or non buying continues together with validates that nosotros bring pose inwards an of import intermediate-term low. My best guess at this juncture is that nosotros bring done simply that together with that nosotros should endure looking for higher prices into the start out quarter of 2009, per the cycle analysis late posted. Failure to expand the number of stocks registering fresh novel highs, failure to keep a positive sloping Cumulative TICK, together with failure to broaden technical trace amidst the marketplace sectors would weigh against this expectation; confirmations from these indicators would endure supportive.
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