The GMI and GMI-R remain at zero and the QQQQ completed its 49th day of its short term down-trend on Friday. There were 5 new highs and 173 new lows in my universe of 4,000 stocks on Friday.
Nevertheless, there is a lot of strength in the underlying technicals. More than 90% of the NASDAQ100 and S&P500 index component stocks now have their MACD above its signal line. This a sign of a possible reversal in these stocks. And a third of the DOW30 stocks have their 10 day average above their 30 day average, the highest percentage since September 22nd, and up from 0-3% for most of October. The Worden T2108 Indicator is now at 15%, up from under 1.2% on October 9. Only 1987 had a lower value, 0.47% on October 20, 1987. (Worden data on T2108 goes back only to September, 1986.) So, it looks like we are off of the bottom. Now we need the major indexes to hold above their October lows to indicate a bottom is in place….
I remain mainly in cash and a little short. I continue to watch EBS, whose break-out I first noted with a chart in my post on October 16, with the stock at 16.66. It hit a new high again last week and closed at $20.33. This is the type of explosive stock at an all-time high that I like to buy in a rising market. So I will watch it and might purchase it when the GMI climbs to 3 or above. By the way, 2 of the 5 stocks that hit a new high on Friday were on the IBD100 list, AFAM and EBS……