Dr. Wish

Both of my General Market Indicators are zero again.  There were 3 new highs and 189 new lows in my universe of 4,000 stocks on Thursday.  This was the highest number of new lows in the past 7 days, but was far less than the numbers reached in the prior decline (over 1,000 new lows per day). I therefore remain mainly in cash with a few short positions. The key to the short term is whether the QQQQ (now at 30.59) can hold these levels and rally to close above 34 in the next few days.  A strong rally from here would be very bullish.  However, trend followers follow the trend and do not act until a reversal has occurred. 

Again, there were no changes in my general market indexes.  The major indexes bounced down off of  their declining primary moving averages.  Once this happens, it is a sign that the short term rally is over and the decline will continue, unless we get a close above these moving averages today.  The key to this market is the quality of the next decline and whether the bottom will hold. If it doesn't, the panic selling may return. There were only 3 new highs and 50 new lows in my universe of 4,000 stocks on Wednesday.  The T2108 is back to 15%.  The place to be for me now is in cash or a little short.

No major changes in my general market indicators.  However, the Worden T2108 indicator climbed to 20%, the highest since September 26.  There were 9 new highs and 34 new lows in my universe of 4,000 stocks on Tuesday.