Resting

Over the last couple of weeks many breakouts have been stalling and or reversing once they broke out.  Over the last 2-3 weeks the NASDAQ , SP500, and the Dow Jones were printing highs but a bulk of the stocks were not.  As you can see in the charts below, stocks above their 20 and 40 day moving average were decreasing in amount while the indices were moving up–small divergence.  You were also able to see this in the advance decline numbers over the last 4 days, while the Nasdaq, SP500, and Dow were closing green and the RUT 2K mostly flat, decliners were outpacing the advancing issues.

The bottom line is; as of right now this is looks to be a normal consolidation/pullback that could lead to another leg higher in a few weeks; that is what the underlying set ups are suggesting NOW.  Keep your eyes open.


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.


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