Major Indexes Stabilize At Key Support Levels

While the focus in the news is on the negative impact of oil prices and yields, the technology stocks have rallied. On Friday, the XLK hit a new high, and the SOXX is rallying as well.

The price patterns of the major indexes look constructive to me. The NYSE pullback looks like a normal reaction to five months of price increases starting with the March lows, and prices may be firming up at an expected support level.

The NASDAQ has been moving sideways for four months and now looks ready to move to new highs. Bullish

The Summations show the slight, initial signs of bottoming out. These Summation indicators tend to lag, so when they do turn upwards, it is a trend confirmation signal.

One indication that the bottom in prices isn't quite established is the level of NYSE new 52-week lows. When the market is ready to rally, I would expect the level to be consistently under about 50 per session.

The uptrend in junk bond prices broke decisively. I am having a hard time imagining that this uptrend will be re-established anytime soon, but it would be at least helpful to see junk bond prices stay above this past week's lows.

I have redeployed some cash into some of the best-performing stocks. About 45% of my accounts remain in Treasury bills via an ETF.

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The medium-term trend continues to point lower, indicating caution towards stock prices.

Global stock market advance/declines are starting to dip below this moving average. The uptrend is broken, but not by enough to be too concerned yet.

Here is another look at the semiconductor chart. There is nothing to complain about here. Bullish

This chart is looking really good as well. Bullish

Oil prices remain in an uptrend, but the price is volatile. Because of this uptrend, I'm a buyer of oil stocks, but because of the price volatility, I'm a buyer on pullbacks rather than breakouts.