The market weakened on Monday and is sitting on support. The GMI is at +6 and there is no change in my outlook since my prior post. Only 10-17% of the stocks in the Dow, Nasdaq 100 and S&P 500 advanced Monday. We had the highest number of new lows (62) since July 29. But there were still 267 new highs, suggesting that there is strength in a concentrated minority of sectors (mostly energy related or metals). The percentage of stocks in my universe of 4,000 that are in a short term up-trend is now at 46%. This is the 10th day of the QQQQ up-trend (U-10) and this trend is vulnerable to a reversal if there is a meaningful close today below the short term moving averages. It should be an interesting day.
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