The GMI rose to +3 on Wednesday because there were 101 new highs in my universe of 4,000 stocks. There were also 100 new lows, demonstrating how ambivalent this market is. 32% of the Nasdaq 100 stocks, 35% of the S&P 500 stocks and 47% of the Dow 30 stocks advanced Wednesday. 21% of stocks are now in a short term up-trend, up from 8% on October 18. One third of stocks are now above their 10 week averages, up from 21% on October 13. Nine of the 14 stocks that hit a new high 10 days ago closed higher than they closed 10 days earlier. While this represents 64% successful 10 day new highs, the numbers are so small that I kept this indicator negative. Nevertheless, it suggests that buying new highs ten days ago had a better than even chance of proving profitable. Wednesday was the third day (U-3) in the QQQQ up-trend.
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