GMI: +6; Indexes below 10 day averages but up-trend intact

The GMI remained at +6 and the main averages are well above their main moving averages.  However, the DIA, SPY and QQQQ all closed below their 10 day averages for the first time since this up-trend began.  Gmi1130r There were 157 new highs and only 41 new lows in my universe of 4,000 stocks.  41% of the Nasdaq 100 stocks rose Wednesday, along with 34% of the S&P 500 stocks and only 7% (2) of the Dow 30 stocks.  Still, 56% of stocks are in a short term up-trend and 64% closed above their 10 week averages.  77% of high earnings doublers closed above their 30 day averages and 13% hit a new high Wednesday.

The fact that the SPY (and QQQQ and DIA) closed below its 10 day average is a sign of short term weakness but does not constitute a reversal of trend.Spy1130 Note that the SPY closed below its 10 day average (dotted line) but is still well above its 30 day average (red line).  The up-trend remains intact—-for now……………

NOTE:    A NEW SECTION TO THE BOTTOM RIGHT PROVIDES LINKS TO MY FAVORITE PRIOR POSTS.  THESE INCLUDE MY STRATEGY POSTS, DEFINITIONS OF THE GMI COMPONENTS, AND MY ANALYSIS OF WHY THE TRADING TECHNIQUES OF THE GREAT NICOLAS DARVAS WORK BEST DURING BULL MARKETS AT ALL-TIME HIGHS.

How have you used this site to inform your trading?  Can you send me some experiences I can post for others  (anonymously, with your prior permission)?  Please send your pearls of Wishdom to me at: silentknight@wishingwealthblog.com

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