The GMI is at 3 (of 6) and the GMI-R is 6 (of 10). The GMI-R is more sensitive to short term trends and reflects the growing strength in the QQQQ. There were 91 new highs and 92 new lows in my universe of 4,000 stocks on Monday. The QQQQ is right up against resistance. A close above 49 will push the GMI into bullish territory. The strength in RIMM and the fact that the IBD Growth Mutual Fund Index has retaken its 50 day average suggest to me that this rally may have further to go, at least through option expiration this Friday.
Meanwhile, I think that China stocks are about to break down. A lot of individual China stocks (CHA, SNP, PTR, LFC, CHL, ACH, JFC, GCH, CEA, ZNH, CHN) have the reversal pattern reflected in this ETF, FXI. Note the reversal in the 30 week moving average (red line). I would not hold any stocks with this ominous pattern; I own puts on LFC.