GMI: 3; GMI-R: 6; Split market

The GMI fell to 3 (of 6) and the GMI-R is at 6 (of 10).  The QQQQ continues to outperform the Dow and S&P500 stocks.  This is mainly because the Nasdaq 100 stocks represented by the QQQQ do not contain the financial stocks that are imploding and weakening these other indexes.  There were 81 new highs and 85 new lows in my universe of 4,000 stocks on Monday.  It remains to be seen whether the weakness in these other stocks will eventually spread to the tech stocks.  This is the time to have close stops and to be ready to go to cash and/or short if the GMI breaks down further.

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