Tuesday, July 08, 2014


The $NYSI went into a sell signal today, the first since the whip saw in early May. A few notes here, this will be the first sell signal, other than the whip saw in May, that came since last September with out making a higher high, if it holds up of course, and we just don't go blasting to Da Moon right away. Second, the numbers at the swing points are the number of stocks that are UP 4% in my daily Market Monitor, here's the snap shot of the current one at "10":

This was the least number of stocks that were up 4% on the day since the bottom in February when there were only nine stocks that were up more than 4%, this is out of about 2600 stocks that are in the scan. On those four previous sell signals prior to the April-May whip saw the November top and the March top had considerably higher numbers of stocks rising 4%, and neither of those sell signals worked, the market actually went higher off the November signal into the sell signal in January. The two sell signals that had much larger pull backs, last October and the January signal, had much lower numbers, at 8 and 13, much like this one, sssoooooooooooooo..................................
This certainly doesn't mean we HAVE to go down, it's just not a very good situation, and the markets do tend to move higher much easier when we are on a buy signal.

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