Friday April 24 2020
The rectangles occupy gaps caused by a lack of either sell orders April 16 or buy orders April 21. Yesterday and today action has filled those gaps.
Percent of stocks over 150 day Moving Average
Given the availablity of charts like this on most trading platforms, I am amazed so many are buying into the new bull market story
After a month of rally only 20% of S & P stocks are over their 150 day MA, hardly bull market territory.The advance shown above is living on borrowed time.
The MAs are all converging, that happens prior to a trend change, PMO is topping in bottom panel, at top RSI worked off over sold by moving to 50% level.
NYSE Advance Decline
This looks much like the 150 day MA chart above. it reflects a weak rally lacking in breadth. Again the MAs are converging, the PMO is topping under the zero level, RSI reached the 50% level. The reversal which should start next week is liable to be brutal. Why
It will be the start of a third wave.
22 million are now jobless, with state unemloyment coffers low
the Paycheck Program does not work as it required employers to re hire workers when they have no business
Our interdependent economy is rippling band news on many fronts
Employers could not find qualified workers before the shut down. The shut down has high lighted just how lacking in skills millions really are. See our weekly newspaper column posted next.
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