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.
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.
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.
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Important Deterioration
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OEXCHAOS
, Dec 12 2013 12:12 PM
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#1
Posted 12 December 2013 - 12:12 PM
Mark S Young
Wall Street Sentiment
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