Stock Market Technical Indicators & Analysis
The GMI has increased to 1 (of 6) and the GMI-R to 3 (of 10). There were 319 new highs and 81 new lows in my universe of 4,000 stocks on Friday.
The major trends are still down, in spite of the huge bounce at the end of last week. It will take a lot more of an advance to turn my daily and weekly indicators for the QQQQ and SPY positive. Friday was the 14th day of the current QQQQ down-trend. This is still a good time to be mainly in cash as the fiinancial markets sort things out.
The GMI and GMI-R rose to one each. This is because there were more than 100 new highs (136) in my universe of 4,000 stocks on Thursday. Almost all were banks. However, some stocks on the IBD100 lists the past year that hit a new high on Thursday are: SF, CNQR, BKE, KNDL, SRCL, BCPC, WST, ASEI, WBSN. This may be where to find the new leaders if a new up-trend materializes. There were also 803 new lows on Thursday. The market remains very volatile, given the impending government interventions. Still, the trend is down. I remain mainly in cash.
The GMI and GMI-R are still at zero. There were 20 new highs and 855 new lows in my universe of 4,000 stocks on Wednesday. The Worden T2108 indicator fell to 15%, within bottom territory but still above the level that markets bottomed the past two years. The past two years, declines ended when this indicator was around 7-8%. Note, however, this monthly chart of the S&P 500 index.
In the context of the 2000-2002 decline, the current decline is small and may be just beginning. I will wait for the GMI to signal an up-trend before I go long again.
