The GMI fell back to +2; there were only 53 new highs (82 lows) in my universe of 4,000 stocks. On Monday, 24% of the Nasdaq 100 stocks advanced, along with 33% of the S&P 500 and Dow 30 stocks. The GMI-S fell to 69, with more weakness in the short term indicators for the QQQQ and IJR ETF’s. In contrast, the SPY and DIA indicators remain strong. Monday was the 23rd day in the current short term decline in the QQQQ. However, the IBD 100 stocks of 5/15 outperformed the general market on Monday. 54% of the IBD 100 stocks from 5/15 advanced while only 32% of the 4,000 stocks in my universe advanced. I do not yet know if the IBD Mutual Fund Index has turned positive. My TC2005 scan of the market yielded 282 submarines and nine rockets. With the GMI at +2, it is a good time to sit back in cash. The growing strength in the IBD 100 growth stocks suggests that there is interest in acquiring stocks with good fundamentals.
Please send your comments to: email@example.com.