The market held on for another day, with the GMI still at +6. But it was a weak market. There were only 128 new 52 week highs in my universe of 4,000 stocks, the lowest number since December 30. And only 55% of the stocks that hit a new high 10 days ago closed higher on Wednesday than they did 10 days before. Only 47% of the Nasdaq 100 stocks rose, along with 45% of the S&P 500 stocks and 23% of the Dow 30 stocks. Only 11% of the stocks that doubled in the past year hit a new high on Wednesday. Wednesday was the ninth day in the current QQQQ up trend (U-9).
The weakness in Japan and in the U.S. market leaders, including GOOG (-4.75%), YHOO (-12.29%) and AAPL (down in the extended session in spite of good earnings) makes me much more cautious about staying long in this market.
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