The GMI held at +4, but the GMI-S fell to 19. All four short term indicators for the DIA, QQQQ and SPY are now negative. Even the indicators for the IJR began to weaken. The continued weakness in the leaders is a sign of weakness to come throughout the markets. Only 39% of the Nasdaq 100 stocks rose on Tuesday, along with 28% of the S&P 500 stocks and 30% of the Dow 30 stocks. Only 49% of stocks are in a short term up trend. There were 131 yearly highs in my universe of 4,000 stocks. Only 50% of the 333 stocks that hit a new high ten days ago closed higher on Tuesday than they did ten days before. Buying stocks at new highs has therefore been profitable only about one half the time. Only 10% of the stocks that have doubled the past year hit a new high on Tuesday. The percentage of stocks within 5% of a yearly high has fallen to 25%. Currently the odds are against being long stocks. Cash is king.
Please send your comments to: firstname.lastname@example.org.