The GMI remained at +6 and the main averages are well above their main moving averages. However, the DIA, SPY and QQQQ all closed below their 10 day averages for the first time since this up-trend began. There were 157 new highs and only 41 new lows in my universe of 4,000 stocks. 41% of the Nasdaq 100 stocks rose Wednesday, along with 34% of the S&P 500 stocks and only 7% (2) of the Dow 30 stocks. Still, 56% of stocks are in a short term up-trend and 64% closed above their 10 week averages. 77% of high earnings doublers closed above their 30 day averages and 13% hit a new high Wednesday.
The fact that the SPY (and QQQQ and DIA) closed below its 10 day average is a sign of short term weakness but does not constitute a reversal of trend. Note that the SPY closed below its 10 day average (dotted line) but is still well above its 30 day average (red line). The up-trend remains intact—-for now……………
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