The GMI declined to +3 on Tuesday. While there were 213 new highs in my universe of 4,000 stocks, there were only 55 successful 10 day new highs. There were 81 new lows, the most since I began posting them last May. Only 40% of stocks are in a short term up-trend and only 46% are above their 10 week averages. While 29% of the Nasdaq 100 stocks advanced, only 19% of the S&P 500 and 13% of the Dow 30 stocks rose. The QQQQ and SPY daily indexes have turned negative. The market is in the beginning of a short term decline (D-1), or worse. Oil and gas related stocks dominated the new high list and housing stocks continued to break down………………. With the GMI weakening, the odds are against taking new profitable long positions, especially in growth stocks at new highs. Going to cash or short………………..
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