Monday, June 03, 2013

The "Big Boys", the $NYAD's, are leading the markets LOWER, the top chart, in fact they actually went DOWN today while the "markets" went up. They broke below a little head and shoulders on them about three days ago, while the market had a great "save" today and didn't break below the point where the H and S started on the AD's. This is easily the largest decline in the AD's since the rally started last November.
The $NYMO, in the middle, is ACTUALLY getting close to a BUY signal, hahahahaha, sigh, I mean, it's obviously DOWN, it's just that -100 has been a pretty reliable buy signal in the past.
The $NYSI, at the bottom, definitely doesn't look good, it's on a sell signal from about a week ago, and also the drop is VERY steep compared to the other drops on the chart. The last two sell signals on it didn't result in big market drops, BUTT, the market went side ways, in the red boxes, until be recovered above the 10 MA. That red vertical line over on the left side points out the whip saw we had, where it didn't trigger a signal until the market had bottomed, you can see the current signal doesn't look any thing like that.

I'm bringing this up because of the hysteria over the "HINDENBURG OMEN" we got, hahahahahahaha, I'm talking about the hysteria on BOTH sides, as the Bear's immediately starting screaming that this is the END, while Bubblevision march's out it's talking heads to down play the reliability of the "signal".
The fact is that the "signal" surely doesn't always work, in fact the last one from last fall or summer failed to materialize, it only means we, COULD, get a "significant" decline some time in the next four month's, "significant" meaning more than 10%.
There is one FACT about the OMEN of course, we don't always get a decline after it shows up, BUTT, we've never had a significant decline WITH OUT getting an OMEN first.

Bottom line personally, I won't get to wild about the market until the $NYSI goes back to a buy signal, just IMPO of course.


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