GMI: 2; GMI-R: 3; Signs of life in the bull; IBD 100 new highs

It appears that this market is looking for reasons to rise.  The GMI is now at 2 out of 6 and the GMI-R is 3 out of 10.  All of my very short term indicators for the SPY, DIA and IJR are positive.  Only the QQQQ lags and this is the reason for the low  numbers on the GMI and GMI-R which are weighted towards the QQQQ.  After a large decline, traders buy the relatively safe large caps and tend to purchase the more speculative stocks later after they have profits and their fear dissipates. There were 80 new highs and 51 new lows in my universe of 4,000 stocks on Monday.  More than one half (52%) of the Nasdaq 100 stocks are now above their 30 day averages and the Worden T2108 indicator is now at 52%.  Many of my other indicators show internal strength in stocks. And many of the stocks I listed in yesterday’s post rose nicely.  While the trend remains down, there are signs the bull may be awakening. Thirteen stocks in the current IBD 100 list hit a new high on Monday:  SWN, POT, CF, WDC, NGS, FLS, MTL, NEU, GGB, MOS, CMED, RRC and KWK.  It is clear that agriculture, oil  and commodities remain popular.

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