Tuesday Dec 29 2020
NASD
The actual index is about where it was at the peak in June. RSI at top is also at the same level.
NYSE
As we have noted the last few posts, the NYSE is further along than the NASD. RSI has already retreated below 70. PMO is falling at bottom. The actual index is turning down, one can see it, okay not big time but it is no longer advancing.
Summation Index versus the actual NYSE Market
The surprise this year was that the pandemic only had a negative effect from February to March. Then everyone stayed home and started speculating. That has taken the markets to new highs witih 25% of the move due to Apple alone.
Indeed yesterday Monday the markets were spurred with cruise lines advancing. And so sector rotation has helped keep the overall indexes high.
Ten Year Perspective
the index is 200 points shy of previous highs. That supports the idea we have an advance into 2021.
150 DA MA
This indicator has begun falling. The Summation Index is a cumulative advance decline measure. Here we have more a spot measure. Stocks don't get much higher than 90% over their 150 day MA. Again the heavy weighting of a few tech stocks has given a skewed picture of what is really going on.
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