GMI: 0; GMI-S: 25; Bounce or turn?

The GMI remains at zero, although just about all stocks advanced on Thursday– 97% of the Nasdaq 100 stocks, 96% of the S&P 500 and 100% of the Dow 30 stocks.  The GMI-S rose to +25 solely because the indexes closed above their 10 day averages. Still the market has a long way to go to turn the GMI positive.  Gmi0615 There were 12 new highs and 50 new lows in my universe of nearly 4,000 stocks.  Only 27% of the Nasdaq 100 stocks closed above their 30 day averages, and 22% are above their 10 week averages.  Only 36% of stocks are in a bullish up-trend.  Thursday was the 25th day of the QQQQ down-trend.

The IBD 100 stocks as of 5/15 had another strong day.  Ibd0615 96% of the IBD 100 advanced, compared with 90% of my universe of stocks.  And 96% of the IBD 100 closed higher than they opened.  70% of the IBD 100 are now in a bullish up-trend.  The two IBD 100 stocks to hit a new high Thursday were GYMB and XPRSA.  Most of the strength came with regard to the short term averages.  Thus, 37% of the IBD 100 stocks are now above their average close for the past 10 days (10 day average).  However, only 9% are above their average closes for the past 30 days, a key measure of strength.  Just 9% of the IBD 100 list on 5/15 closed Thursday above their close on 5/15.

Only time will tell whether this rush to buy is more than a brief bounce from the string of down days.  Most bottoms take time to form, with at least one re-test of the lows.  I only know a turn after a new trend is established. For now, the trend remains down.

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