Interestingly, the market accumulated Discretionary Stocks over Staple Stocks as the market corrected to the downside. Not sure what that means.
The market may have found support at the 50% correction level of yesterday's uptrend wave.
Charles
Subscribe to:
Post Comments (Atom)
Institutions are in Accumulation. Inflowing Liquidity is low and negative, so this is a mixed market condition that is more conducive to moving in a sideways trading range at this point.
ReplyDeleteI was disturbed last night when I saw that the Broad Market stocks had huge changes relative to the percentage of stocks with Upward Strength vs. Downward Weakness which made huge progress. However, the Very Strong to Very Weak percentage of stocks showed a dismally low move. It is the Very Strong stocks increasing in numbers and strength that is NEEDED to support an upside market rally, and that appeared to be a problem yesterday.
ReplyDeleteSo, I went back to Sept. 2007 when the market started to unravel to the downside. I was interested in observing the deviations between the Very Strong/Very Weak stock Ratios vs. the Strong/Weak stock Ratios. The market is moving up, but the Ratio deviation is trending DOWN. This is a problem ALERT that something appears to be very wrong.
MAXFACTOR, good analysis. I also suspect that we are above the level that institutions consider a good buy point. We probably will not see a lot of institutional buying until the market corrects below that level.
ReplyDeleteCharles