Last Thursday's rally created divergence between that of the common stock only and composite ratio adjusted NYSE MCO's, so we're out of sync at the current time...where the bulls don't quite yet have the power needed to drive prices higher on a trending basis, and this is being reflected by the choppiness of the MCSUM itself from the end June lows.What do you think of NYMO and summations at this point. They aren't exactly in a rally mode. Looks more like money is flowing out of the market rather then flowing in.
The NYSE breadth MCSUM has relieved much of the extreme "overbought" conditions during the month of June, and it's now in the process of finding itself in attempt to move higher from it's zero line. Near term, the NYSE volume MCO and MCSUM continue to suggest that there isn't much power with the bears either, so any or all surprises will continue to the upside until this side better asserts itself.
All of this could be OPEX related with many traders presumably loading up on July puts because of the choppy June period, but technically, the divergence between the common only and composite MCO's is instructing us that until the interest rate sensitive stocks of the NYSE show some production, we're more than likely going to see a very selective marketplace with a bullish bias near term, and where, the rest of July and August should see a continuation of the uptrend that began back in March once the current indecisiveness is remedied.
Fib
