The GMI has declined to +1. Only 24% of stocks are in a short term up-trend. This is the fourth day in the QQQQ down-trend. Only 71 stocks hit a new high on Friday, out of 4,000 stocks in my universe. While there were 118 successful 10 day new highs on Friday, this represented only 34% of all stocks that hit new highs 10 days earlier. So, I still consider this index to be negative. Only 37% of stocks are above their 10 week averages and only 20% are within 5% of their 52 week highs. The extent of the deterioration in the market indexes can be seen in the WPM.
In contrast to last week, now none of the 5 indexes closed above their 30 day averages and only about one third of their component stocks closed above their 30 day averages. The QQQQ index stocks look the weakest, with only 26% above their 30 day averages. The Dow 30 stocks tracked by the DIA is now below its 30 week average–a very bad omen. While the other indexes closed above their 30 week averages, it is noteworthy that only 37% of the Dow 30 stocks and about one half of the stocks in the other indexes are above their 30 week averages.
This is a very weak market and I remain in cash and short, with few exceptions. Earnings warnings will be coming out soon and driving some stocks lower. If you want to find out the dates on which specific companies will report earnings, go to this site.
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