Deprecated: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in /home/traders/public_html/wp-includes/functions-formatting.php on line 76
Let’s do a quick review of this week in the markets:
New High-Lows Indicator
I mentioned on Tuesday, the High-Low Indicator had fallen to less than 5%, flashing a bright red light signal for an inflection point. Last time this indicator had pinpointed a swing low almost to the day so I was naturally listening when it talked.
It is too early to give a definitive answer but it looks like this new signal is also good
Percent Above Moving Average
For both Nasdaq and NYSE securities, the percent of stocks above their 50 day moving average dipped just shy of the magical 20% threshold (20.59% and 20.65% respectively, to be exact). There’s nothing really magical about the 20% level in as much as it has tended to be the level at which a rout in the market ends and a new rally begins.
Today’s amazing bull run comes at just the right time:
- it fits the “Santa Claus” rally many are expecting
- it fits the year-end seasonality
- it fits the oversold readings from the two indicators I mentioned
Take a look at this week’s sentiment overview for some really eye popping information. You don’t want to miss this!
Enjoyed this? Don't miss the next one, grab the feed or