On a short term basis, our Advancing Issues Model is
trending up which is positive
and the Time Trended Indicator is still moving
up.
On a longer term basis, the Long Term Model is losing steam to
the downside. (Chart
not shown.)
What this model also doesn't show, is the strength
and Selling Pressure behind this market
up move. We always show paid
subscribers Selling Pressure, as it is a key
component in any market
move. The higher the selling pressure, the higher the distribution
that
is occurring. The lower the selling pressure, the less resistance there is
in any market
up move. Not knowing what the
market's Selling Pressure is, is like driving your car
and not knowing if the
brakes will work.
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As the market moves up, careful thought should be
given as to whether a Head & Shoulders pattern
is developing on the
Indexes. If that is the case, then indexes like the NYA below would
rise
further until it formed a right shoulder and then descend.
Be on guard for any rapid reversal in the coming
days. If a Head & Shoulders pattern is what
will be forming, then
look at the "LS" (left shoulder label) on the chart and note how quickly
it
dropped two days in a row. Those two days erased all the
profit from the previous 14 days.
