The GMI is still 6 and all of my indicators are positive. 
Is a New Year’s rally shaping up? But what do Dec 11, 2000, Dec 6, 2001, Dec. 2, 2002, January 20, 2004 and Dec 15, 2004 have in common? They were all peaks in the QQQQ! So before we jump on the New Year’s Rally bandwagon, maybe we should be open to the possibility that a major market top can form in December or January. In fact, January 11, 2006 was a peak in the QQQQ this year (at 43.31) that was not exceeded until a few weeks ago on November 9, after reaching a low of 35.54 on July 18 (an 18% decline from the January peak). A December or January top is therefore far from unlikely, especially in an atmosphere of frenzied bidding up of IPO’s and a growing number of people with stock market profits betting on a New Year’s rally…………
Meanwhile, Friday was a terrible day for the Nasdaq 100, with only 22 of the 100 stocks advancing, the lowest number since November 1. 35% of the S&P 500 stocks rose on Friday along with 23% of the Dow 30 stocks. While only 12% of the Nasdaq 100 stocks rose on November 1, that was two days before the latest push up began. Friday was the 69th day in the current QQQQ up-trend. Stay tuned……..
44% of the Nasdaq 100 stocks advanced on Tuesday, along with 54% of the S&P 500 stocks and 63% of the Dow 30 stocks. 63% of the Nasdaq 100 stocks closed above their 30 day averages. Many stocks and market indexes bounced off of the important support levels I monitor. It is very important that they hold these levels tomorrow. Declines below these levels could cause the GMI to turn negative. Tuesday was the 71st day of the current QQQQ up-trend.
