The GMI remains at 1. 56-66% of the stocks in the Nasdaq 100, S&P 500 and Dow 30 indexes rose on Wednesday. Only 37 stocks in my universe of 4,000 stocks hit a new high. The Dow could only manage a rise of 52 points after falling 400+ the day before. This looked like a feeble dead cat bounce and suggests that there is more weakness to come. Right now it is time to be in cash while we wait for trends to develop.
See my disclaimers at the bottom of yesterday’s post.