13 replies to this topic

[OEXCHAOS]

All Momentum is Bullish now, as well.

[arbman]

Not really, it largely depends on what the market will do with this gap up open. It's very likely that we are seeing a blowoff top...

Check these out, net volume in common stocks showed outflows today despite new highs:

http://stockcharts.c...id=p77726264638

S&P 500 index reached a new high with only utilities and staples hitting new highs. Industrials reached to new highs however it didn't close there. But industrials and technology are not too far behind...

The cumulative A-D (common stock only) is also not hitting new highs anymore...

http://stockcharts.c...id=p02481504826

So if the market sells off from the open, it's very likely that the breadth won't improve.

FWIW...

Edited by arbman, 25 May 2017 - 02:09 AM.

[arbman]

The trading has just begun, but the growth stocks are leading and the volume and breadth are expanding. I think we are seeing a fireworks phase before a top, Topping may still take several weeks, let's see how the day ends and whether the rally sticks...

[arbman]

The net advancing-declining volume on NYSE is now negative, the A-D breadth is narrowing, the leadership is still in the growth stocks, but I am not sure it is only a short squeeze or a feature of the fireworks phase. This blow off may reverse suddenly, I don't see the broad participation. Russell 2000 Index could not even close its gap from the big selloff... I am not impressed, I still think this is topping, of course we may see higher in large caps...