Douglas Gammons | TalkMarkets | Page 17
Retired
Contributor's Links: HeadlineCharts
Retired software engineer turned writer/investor and owner of HeadlineCharts. I am not a registered investment advisor. My comments reflect my view of the market, and what I am doing with my accounts. The analysis is not a recommendation to buy, ...more

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Nasdaq Index Recovered Today
The Nasdaq Index recovered very nicely today, and the Small Cap Index is reaching up to new highs. It is hard to declare a downtrend.
Short-Term Uptrend Continues
The short-term uptrend continues, but the market has struggled a bit over the last few days as shown below by the NYSE advance/declines. Now I watch the SPX and a few other major indexes to see if they close below the 5-day average.
Not Much Direction In Today's Market
The bullish percents showed the NYSE stocks to be a bit weak, while the Nasdaq stocks continued to show strength.
Junk Bonds Have Perked Up Lately
The major indexes all have strong scores and skewed right which confirms holding US stocks.
Technology Is Leading The Market Higher
The major indexes didn't move much today, but breadth was healthy and encouraging for the bulls.
The Market Rallied Nicely Today
The performance of today's leaders and laggards could be pointing back towards weaker growth and low rates. For now, this trend works in favor of Technology and against Energy.
The Market Is Very Much Headline-Driven
The US Dollar is strong relative to most other currencies. A strong dollar usually suggests avoiding dollar-denominated foreign ETFs.
Short-Term Unsure, Long-Term Cautious
My guess is that there will be an early summer peak, and then the market will struggle into the November elections.
Markets: Sector Strength
A review of various areas of the general market.
Signs Of A Short Term Downturn
It is time to be looking for signs of the next short-term downturn. There is nothing particularly bad, but the market is struggling a bit, the bullish percents have paused and new 52-week highs have pulled back.
The Market Continues To Trend Higher As Confirmed By The Bullish Percents
The market is able to launch significant rallies. From a contrarian's point-of-view, the current level of bullishness in this survey favors higher stock prices.
Dow Theory Favors Higher Stock Prices
If bond prices move significantly lower then I think it is likely that the Semiconductors will point lower too, and this works against stock prices.
Excessive Bullishness Flushed Out
In January, the market ran up too high, so a lengthy period of correction or consolidation was needed before a healthy trend could resume. It looks like we had just about three months of correction which seems about right.
Short-Term Uptrend Is Doing Well
Breadth indicators continue to support the uptrend. New highs are starting to look healthy, and new lows are at harmless levels.
The Week In Charts: The Big Picture
Technology stock prices don't like higher oil and higher rates, and we can see that now in the charts. The Semiconductors look vulnerable, and that's important because the general market needs leadership from this group.
Too Early To Tell On Uptrend
My guess is that a short-term uptrend has started, but I am not ready to make the call quite yet with a couple of themajor indexes still below their 50-day average
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