General Market Index (GMI) table

Dotted line is daily closing price and is now above all 12 exponential moving averages and leading them higher. When all red lines are constricted it signifies little price movement — a short term base.

A GLB is a green line break-out. It signifies a stock that has hit an all-time-high (ATH) that is subsequently not exceeded for at least 3 months and then breaks out to a new ATH. While not all winners, some GLBs go on to do very well. I like to see above average volume on the day of the GLB. If the stock closes back below its green line, it is a failed GLB and I sell immediately but will buy it back if it retakes the green line. The green line is drawn at the peak price on a monthly chart. I often buy GLBs on the day of their break-out if I see them. (I use TC2000 to alert me intraday of a GLB.) Otherwise I wait for the stock to consolidate and bounce off of support or break out again. Here are weekly charts of stocks that had a GLB last week. They need to be researchers and evaluated before buying.

The GMI remains on a Green signal.

Often times a major advance is characterized by the stock or ETF tracking its 4 week moving average. When it closes the week below that average it often means the rise is weakening or ending. The long rise from October 2019 through February 20202 lasted 21 weeks. In only one of those weeks did QQQ close the week below its 4 week average (red dotted line) although sometimes it traded intraweek below the average. When the stock’s weekly low is floating above the average, it often returns to kiss it. This is what happened last week. The QQQ returned to kiss the 4 week average. It is critical that it close above it next Friday. The QQQ has closed above its 4 week average the past 4 weeks. However, a strong up-trend has  the 4wk>10wk>30Wk, as was the case during the prior 21 week advance.

The GMI remains Green at 4 (of 6) but the shorter term GMI-2 has weakened to only 3  positive elements (of 8). New highs are still rare these days.