Jump to content



Photo

Important Deterioration


  • Please log in to reply
No replies to this topic

#1 OEXCHAOS

OEXCHAOS

    Mark S. Young

  • Admin
  • 21,998 posts

Posted 12 December 2013 - 12:12 PM

We've been very concerned about the current market since Thanksgiving, due to some reliable sentiment measures (See our comments and charts here ).

Things are actually getting worse. Breadth has been poor if not on an outright sell for some time now. One of our favorite measures of breadth is Carl Swenlin's ITBM. Take a peek. Despite the bounce we had earlier, this indicator didn't budge.

DPITBM12_11_13.gif

Now, with the current weakness (as of Thursday noon), we are at risk of turning the weekly MACD negative, which would imply 2 weeks or so of further weakness.

dWklyMACD12_11_13.gif

Pay attention to these two indicators. The "powers-that-be" can certainly save this market and reverse it before the weekly turns down. If they don't, it bodes ill, however.

On the flip side, a few more down days might set up a nice rally and should the ITBM turn up from low enough, it's a signal no investor will likely want to miss.

To order our Weekly, Day, or Premium day trading services, use THIS LINK.

Mark S Young
Wall Street Sentiment
Get a free trial here:
http://wallstreetsen...t.com/trial.htm
You can now follow me on twitter