Tuesday, July 16, 2013

We have a, aaahhhhhh, "SITUATION", developing on the MAIN "indicators", the A/D's, $NYAD. Neither the weekly, at the top, nor the daily at the bottom, are, "CONFIRMING", the new closing highs in the SPX. This is so unusual that I thought it worthy of mentioning it, as the A/D's, ALMOST, ALWAYS, LEAD, the markets higher, as I showed on the vertical lines on both charts. The daily chart shows the divergence we currently have very clearly, in fact, it flattened out Friday with the new highs in the SPX.
I am NOT saying the market is in trouble, I'm just saying, well, we HAVE to have this thing CONFIRM very quickly, like if we continue with new highs the first couple of days next week, this thing damn well better confirm those new highs.
Now the good part:

The monthly A/D's are NOT in trouble, YET, we won't know of course until we get the July close, but for now they have a little bump higher.
The monthly charts are the ones that start screaming, DANGER WILL ROBINSON, DANGER, as they did in the dumb ass run up in 1999 to the 2000 top, and again at the October 2007 top, currently we are not close to those configurations, but, naturally, we have to first get a PULL BACK, and then make new highs, before we can get a danger signal on them, and the AHOLE at the FED is NOT going to allow any kind of pull back, as he indicated this past week when he admitted he panicked after the markets dropped when he hinted he may pull the free money to his owner's on Da Street in May.


blogger templates | Make Money Online