I'm using some new tools here to look inside the market and I'm not seeing
the indications of weakness others are reporting here ... not yet anyway. The
High Growth Stock Investor does a remarkable job of allowing one to look at the
internals of any market index or sector. The NYSE Common and NASDAQ indexes are
not yet showing signs of internal breakdown in breadth or volume and most
indexes continue to show internal accumulation.Recently, I am seeing a decline
in accumulation volume with no increase in distribution volume. Things would
change quickly if distribution volume were to pick up.
Attached is a picture of the Total Market Model mentioned in a
previous post. The model is composed of indexes representing all the stocks
on the three major exchanges. The bottom model assigns equal weight to the
three exchanges. As you can see it has reversed to the downside. The
blue line considers each index in proportion to the total stocks on
each exchange. It is nearing a reversal in the next several days. The
Forecaster projects trend changes for all major indexes on Friday/Monday. A
similar model of all 30 stocks in the DJIA went bullish on Monday With
the markets essentially ignoring record energy prices, it would appear a
significant new bearish impulse would be necessary to turn the
markets around. It is some what uncanny that major unplanned impulses often
occur around the Near Impulse dates. Be aware and cautious.
Jim
White
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