Things turned weak on Tuesday, and the GMI declined one, to +5. While there were 300 new yearly highs in my universe of 4,000 stocks, only 32% of the Nasdaq 100 stocks, 24% of the S&P 500 stocks and 17% of the Dow 30 stocks advanced. Significantly, the DIA and SPY indexes closed below their 30 day averages. The QQQQ held. Even worse, the DIA closed below its 30 week average, a major sign of weakness. The market is not exhibiting any sustained trend, with the indexes closing above, then below their key moving averages. Housing stocks remain in a down-trend, with interest rates rising. With earnings season approaching, selected stocks are rising, hinting at good earnings to come. Nevertheless, this is probably a good time to be mainly in cash on the sidelines.
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