8 replies to this topic

[Trend-Signals]

Qs above 50dma

SPX-DOW-Nasdaq trading near at 50dma

http://stockcharts.c...92375&r=923.png

http://stockcharts.c...54533&r=446.png

http://stockcharts.com/c-sc/sc?s=$INDU&p=D&yr=0&mn=10&dy=0&i=p66435049971&a=115289116&r=145.png

http://stockcharts.c...92643&r=773.png

http://www.stockcharts.com/c-sc/sc?s=$COMPQ&p=D&yr=0&mn=3&dy=0&i=p31411575960&a=115683364&r=765.png

[DraggdOut]

I approach it from this perspective: what was our leadership during the recent run up to the August high? what was our leadership on the downside? who were/are the high betas? is that leadership still intact? - Energy leadership on the upside is intact (indicative of uptrend) - Real estate is rallying (indicative of uptrend) - SPX & RUT2K are leading (indicative of uptrend)

[Trend-Signals]

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=3&dy=0&i=p54460905161&a=115499637&r=963.png




Leadership analysis is, of course, varies.

Your post shows,

Sector leadership


I was showing price performance leadership among major markets.

It is showing big cap tech is leading at the moment as we can see on Qs.

I approach it from this perspective: what was our leadership during the recent run up to the August high? what was our leadership on the downside? who were/are the high betas? is that leadership still intact?

- Energy leadership on the upside is intact (indicative of uptrend)
- Real estate is rallying (indicative of uptrend)
- SPX & RUT2K are leading (indicative of uptrend)

http://www.stockchar...22821&r=444.png
http://www.stockchar...23696&r=803.png
http://www.stockchar...22822&r=572.png
http://www.stockchar...22827&r=798.png
http://www.stockchar...22851&r=442.png
http://www.stockchar...22852&r=364.png
http://www.stockchar...22600&r=170.png
http://www.stockchar...22604&r=242.png
http://www.stockchar...22605&r=555.png
http://www.stockchar...22606&r=962.png
http://www.stockchar...22607&r=182.png
http://www.stockchar...22602&r=788.png
http://www.stockchar...22608&r=715.png
http://www.stockchar...22601&r=193.png
http://www.stockchar...22603&r=157.png

[DraggdOut]

Leadership is multi-faceted. NDX hasn't demonstrated convincing leadership over the past year. NDX lagged INDU & SPX all the way up because fast money wasn't buying the US goldilocks growth story. Now all of a sudden "tech is resistant to housing-induced slowdown" and growth estimates are being re-evaluated. Tech is fickle. If we're going to new highs SPX & RUT will lead us there. If VIX closes below 24 to invalidate its cup & handle and the major indexes maintain their ST breakout we may well be on our way.

[Trend-Signals]

http://stockcharts.com/c-sc/sc?s=$NDX:$COMPQ&p=W&yr=4&mn=0&dy=0&i=p28562497868&a=78426155&r=738.png





NDX broke above resistance as shown on the ratio chart.

[DraggdOut]

And what, in your opinion, is that indicative of? To me it just looks like a flight to quality...

[Trend-Signals]

Yes, and Intermediate market breadth is coming off from major low which could be implying that the rest of tech could perform better going into year-end.

[eminimee]

this is the one you want in breakout to be super bullish
http://stockcharts.com/c-sc/sc?s=$NDX...4631&r=5658

[Trend-Signals]

Market led by Tech is good, in this case, by big caps so far....