The GMI remains at +4, but there are a lot of strong stocks. There were 443 new highs on Thursday in my universe of 4,000 stocks. This was the most new highs since 541 on January 9. There were 245 successful 10 day new highs, stocks that hit a new high 10 days ago and closed higher on Thursday than they did 10 days ago. Buying new highs has been profitable again. Three quarters of stocks closed above their 10 week averages, but only 48% are in a short term up trend. Still, the leaders have been strong. 89% of the stocks that doubled over the past year closed above their 30 day averages and 27% hit a new high on Thursday. 36% of stocks are now within 5% of their 52 week highs. 85% of the Nasdaq 100 stocks advanced, along with 67% of the S&P 500 stocks and 73% of the Dow 30 stocks. The Daily SPY index is now too close to call. The QQQQ and DIA remain below their 30 day averages. Thursday was the fourth day in the QQQQ short term decline (D-4).
My indicators are not consistent with each other and the short term trend is too difficult to call. The bounce back from last Friday’s large decline has been weak. I will wait for the DIA and QQQQ to reclaim their 30 day averages before I will be confident of a new up trend.
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