General Market Index (GMI) table

The SPY is just hanging on to its 30 week average but the 4 wk has crossed above the 10 wk. This week should reveal its likely trend. Remember, we are approaching “Sell in May” time.

But the 10/30 weekly chart of the SPY shows a possible change in trend (towards down).

I looked at the 10/30 weekly charts for 36 ETFs representing foreign markets. Only 9 of them had their 10 week avg >30week avg for at least 2 weeks. They are: Thailand (THD), Peru (EPU), Qatar (QAT), United Kingdom (EWU), Mexico (EWW), Canada (EWC), Brazil (EWZ), South Africa (EZA) and Chile (ECH).  Many countries look like China (GXC). What is this telling us about the health of the world economies?

The GMI is at 5 (of 6). The only way the GMI will turn 6 is if the QQQ retakes its 30 week average (solid red line). Stay tuned.

These 10 stocks passed my WeeklyGreenBar scan. They came from my IBD/MS lists, had strong weekly technical patterns, near ATH and RS (SPY) at a 20 week high.

FANG and MP had a GLB last week. Weekly charts below.

The GMI remains on a Green signal

No one knows whether the market’s final bottom is in or if this is just a dead cat bounce. The major indexes are still below their declining 30 week averages. So the longer term trends are down but we now have a short term up-trend. A change in the short term trend is more tradable once it lasts 5 days. If the GMI can flash Green I may become more confident of this turn….

My TC2000 WeeklyGreenBar scan helps me find stocks trading at all-time highs that have strong relative strength and technical strength. I applied the scan to a watchlist of 483 stocks that have appeared on promising lists in IBD or MarketSmith in the past few months. Seven of those stocks passed this scan. When I scanned all 6.997 US stocks, it found another 6 stocks. In this table, the IBD/MarketSmith stocks have a blue flag. The last column shows Friday’s trading volume divided by the  average volume the past 50 days. Some of these stocks may turn out  to be true market leaders. I will monitor them. I have very small positions in a few of them in my trading IRA and remain 100% cash in my university pensions.

The GMI remains 2, of 6. When the GMI registers 4 or more for two consecutive days it will flash Green.