The GMI remains at 5. 
On Friday, there were 183 new highs in my universe of 4,000 stocks and only 9 new lows. 67% of the Nasdaq 100 stocks rose, along with 72% of the S&P 500 stocks and 97% of the Dow 30 stocks. 81% of the Nasdaq 100 stocks have now closed above their 30 day averages. 24% of my universe of stocks are within 5% of their yearly high. 66% of the IBD 100 stocks from 5/15 advanced on Friday, as did 60% of my stock universe. It looks like the strong IBD 100 type of growth stocks are now leading the market up. Friday was the eleventh day in the current QQQQ up-trend….
I thought it might be useful to see how the GMI performed during the recent decline. 
As the chart shows (click on to enlarge), the GMI topped out at 6 on May 8 and 9 and fell to 4 on May 11. It remained below 5 until August 16 and was between 0-2 during most of the decline. Between May 11 and August 16, the QQQQ declined 5.3% and 70% of the QQQQ stocks (Nasdaq 100) declined. It was during this period that it made sense to be in cash or short. Now that the GMI is hovering around 5, it is time for me to be adding stocks. When the GMI turns 6, the up-trend will be on a strong footing……………
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