The GMI remained at +6, but the market was weaker Tuesday. Only 44% of the Nasdaq 100 stocks rose, along with 37% of the S&P 500 stocks and 30% of the Dow 30 stocks. 
There were 375 yearly highs in my universe of 4,000 stocks, down from 414 on Monday. Tuesday was the third day in the QQQQ short term up trend (U-3). However, the GMI-S declined to 69 because of more weakening in the DIA indicators. I mentioned yesterday that I wanted to see how the market reacted to GOOG’s earnings. In extended trading the stock was down over 50. The decline in AAPL and GOOG post earnings tells me more about the health of the market than the health of these two leading stocks. If the strongest stocks weaken, the rest of the market will follow suit. So, I am raising my stops and remain on the defensive. The indicators are beginning to look toppy to me……
Please send your comments to: silentknight@wishingwealthblog.com.
Smart guy — predicted Google’s earnings shortfall, while Wall Street sellside ANALysts remained extremely bullish: http://www.awadallah.com/blog/