Wed May 23, 2012
NASD NYSE summation indexes
It appears that the market needs a few more days of sell off ot reach the -800 level where the lows occurred last Octob er. Recall that Oct 3-4 registered a 400 point Dow down day. As per usual there are more Greek worries in the news but the real story is above. The market has simply not reached enough of an oversold level to bototm out yet, period.
After the HGT disaster we will no longer spotlight any individual issue. Instead we will focus as we mainly have on fund type investments such as Central Fund CEF or GDXJ. Commodity proudcing firms are experiencing more insider buying as the market drops.
The market is down this morning. Perhaps this is the start of the last move, recall we were looking for a fifth wave at the end of last week. Above we can see that the two days of rally did nothing for the summation index.
Bullish Percent
This indiccator has fallen near but not there yet to the December low area. We cannot know if a bottom will require some sort of wash out ala last October, but we can watch and wait.
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