The market held steady Monday, as did the GMI, at +6. There were only 106 successful 10 day new highs–stocks that hit a new high 10 days ago and closed higher on Monday than they did 10 days ago. The number of new highs declined to 414. Only 40% of the Nasdaq 100 stocks rose, along with 42% of the S&P 500 stocks, 33% of the Dow 30 stocks and 44% of the S&P 600 small cap stocks. There were no changes in the GMI-L or GMI-S. Monday was the second day in the QQQQ short term up trend (U-2)…..
The way the market reacts to GOOG’s earnings release Tuesday will probably tell us a lot about the market’s near term health. Also, the chart of the short term interest rate index shows that traders see no end in sight to the rise in rates. The Fed will surely accommodate them on Tuesday. I would be much more optimistic about this market if the QQQQ could take out its January 11 peak.
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