A/D charts look very weak.

This should be bothersome for the bullish case here.

Glaring negative divergences on A/D. It has never really recovered with the indexes. Especcialy the Nasdaq. Once again a small group of speculative momentum stocks has provided for the bulk of the rally. There was no broad support.

New highs/lows charts are also looking about the same. Big negative divergences. Despite the 10% rally in the indexes the broad market has not regained any footing. And considering improving sentiment, it creates a very suspect picture for the bulls, IMO.

Edited by ogm, 08 May 2008 - 08:58 AM.

A/D issuses have been fugly for quite sometime, other than lower and lower.....

A/D volume has been more helpful, for me.

It won't take much to turn naz mcosc below zero, which in turn... we may see the summation rolling over soon, right at resistance.

I'm betting it will.... it's got to prove/show me I'm wrong.


http://stockcharts.com/c-sc/sc?s=$NAMO&p=D&yr=2&mn=3&dy=0&i=p04426582306&a=37400435&r=5905.png


PS. good to have you back

Edited by ronkw, 08 May 2008 - 11:58 AM.

I still can't believe how weak the financials have been off the March lows. Just look at XLF, BAC, C etc. cheers, john

Good to see you ogm. Daily chart of $NDX with McClellan summation below. I have no position.
Best to you.

http://www.masterdat.../charts_NDX.htm





Overview:

The McClellan Summation Index is a market breath indicator based on the McClellan Oscillator.

The McClellan Summation Index was developed by Sherman and Marian McClellan. Extensive coverage of the index is provided in their book Patterns for Profit.

Interpretation:

The McClellan Summation Index is a long-term version of the McClellan Oscillator. Its interpretation is similar to that of the McClellan Oscillator except that it is more suited to major trend reversals.