Some good news for the buyers as the short term trend of volume continues to improve, though much of this can be finger pointed to anything related to artificial intelligence. On a technical basis alone, the McClellan Oscillator historically stays on either side of its zero line for a period up to 4-6 weeks at a time. Right now we're at 5 weeks, and congestion of the individual postings on its sister tool, the McClellan Summation Index, is showing good buoyancy in both the SPX and OEX. On the breadth side, the SPX and OEX MCSUM's are still above their -250 levels, so if we do turn up from here, volume would be leading breadth to the upside where price trend creation can then develop. So Friday becomes important for both sides, though if one were to look at the daily price trends on the NASDAQ, NDX and OEX, their directional bias is leaving very little to debate about.
Overall then, we might be looking at some sort of exhaustion for both sides...short term bottoms for the broader market, while money made in the A.I. area moves from issues that are now deemed "overvalued" to those that have been under pressure to perform. In other words, like weather warnings themselves, the storm clouds of the last couple of weeks have now passed for the most part, so a more neutral outlook of things would seem to be prudent.
Let's see how things go into Monday, but any further strength between now and then would allow prices to have a bullish bias into this month's OPEX event on the 16th.
Fib
