The market weakened again with the GMI now falling to +2. I do not have tomorrow’s IBD yet. If the IBD Mutual Fund Index is below its 50 day average, then we are really at +1. The GMI-S fell to 19, with the DIA being the strongest of the indexes. Only 29% of the Nasdaq 100 stocks rose on Monday, along with 34% of the S&P 500 stocks and 40% of the Dow 30 stocks. HON, HPQ and T are among the strongest Dow stocks. There were only 87 new highs in my universe of 4,000 stocks and 84 successful 10 day new highs. Only 31% of stocks are in a short term up trend. Monday was the seventh day in the QQQQ short term down trend……….
Since its peak on January 10, the QQQQ has declined 5.6% and 60% of the Nasdaq 100 stocks have declined. During this period the leaders have been crushed. The biggest declines, in order were: GOOG (-26%), YHOO (-25%), SNDK (-23%), ISRG (-21%), AAPL (-20%), INTC (-19%), WFMI (-18%), AMZN (-17%). Most of these stocks are the IBD type of growth stocks that rocketed in a strong market. The carnage sustained by these stocks does not bode well for the market. The leaders tend to be slaughtered first in a general market decline.
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