Sure, summations are still high, but summations are slow moving indicator. A second derivative of breadth.
The MCO and MCSUM and their technical usage.
The rest of the thread may also prove to be beneficial as well.
Fib
Fib,
Thank you for the excellent explanation. You're absolutely correct.. with Summations this high it would be hard for the price to "just collapse" ... that however doesn't mean that the decline may not get underway however slowly.
High summations do indicate momentum in internals, and as any momentum it has to weaken first before it kicks in the opposite direction.
Second derivative isn't an insulting term, just a mathematical one
Summations are a very valuable technical tool, I always knew that. But they are still based on breadth.
And breadth is starting to noticeably under perform, I'm sure you're not going to argue that. MCO is obviously getting weaker, % of stocks above various moving averages, Bullish % indexes, etc. The rally is losing steam and broad support in internals.
Now we may differ in opinion if it re-accelerates upwards or keeps getting worse, which may lead to summations completely rolling over eventually (several days of negative breadth would do the trick) ... but that's a different story.
Edited by ogm, 16 March 2013 - 08:12 AM.