Unsurprisingly, there is no change in the indicator summary as stocks held their gains this week. Trading turned a little more indecisive, but we have yet to see any signs of significant selling pressure. The NYSE AD Line hit another new 52-week high this week, the AD Volume Lines remain in clear uptrends and new highs continue to outpace new lows. The only potential negative is that stocks are overbought and ripe for a corrective period. However, as we have seen the last few weeks, stocks can become overbought and remain overbought.
- AD Lines: Bullish. The Nasdaq AD Line broke out in early January and is now stalling near the October high with what looks like a flag formation. The NYSE AD Line forged another new 52-week high this week and remains in a strong uptrend.
- AD Volume Lines: Bullish. The Nasdaq AD Volume Line broke out in early January and exceeded its July high this month. The NYSE AD Volume Line has yet to exceed its July high, but remains in a clear uptrend with no signs of weakness.
- Net New Highs: Bullish. Nasdaq Net New Highs have been mostly positive in 2012 and the Cumulative Net New Highs Line moved above its 10-day EMA the second week of January. NYSE Net New Highs have been largely positive since late November and the Cumulative Net New Highs Line is in a strong uptrend.
- Bullish Percent Indices: Bullish. Eight of the nine sector Bullish Percent Indices are above 80%. The Consumer Discretionary Bullish% Index ($BPDISC) is at 77.5%, which is hardly weak.
- VIX/VXN: Bullish. After bouncing the first half of February, the CBOE Volatility Index ($VIX) and the Nasdaq 100 Volatility Index ($VXN) fell back the last five days and remain in clear downtrends.
- Trend-Structure: Bullish. DIA, SPY and QQQ recorded new 52-week highs this month. IWM and MDY have yet to surpass their 2011 highs, but are in clear uptrends and by no means weak.
- SPY Momentum: Bullish. RSI is in its bull range (40-80), the Aroon Oscillator surged back above +50 on 27-Dec and MACD(5,35,5) has been positive since 21-Dec.
- Offensive Sector Performance: Bullish. The Finance SPDR (XLF) has started to lag with a trading range the last 2-3 weeks, but the Consumer Discretionary SPDR (XLY) and Technology SPDR (XLK) hit new 52-week highs this week.
- Nasdaq Performance: Bullish. The $COMPQ:$NYA ratio broke above its mid December high and techs have been outperforming in 2012.
- Small-cap Performance: Bullish. The $RUT:$OEX ratio broke above is December highs in mid January as small-caps came to life in 2012.
- Breadth Charts (here) and Inter-market charts (here) have been updated.
This table is designed to offer an objective look at current market conditions. It does not aim to pick tops or bottoms. Instead, it seeks to identify noticeable shifts in buying and selling pressure. With 10 indicator groups, the medium-term evidence is unlikely to change drastically overnight.
Previous turns include:
Positive on 30-December-11
Negative on 16-December-11
Positive on 3-December-11
Negative on 23-November-11
Positive on 28-October-11
Negative on 5-August-11
Neutral on 29-Jul-11
Positive on 30-Jun-11
Negative on 17-Jun-11
Positive on 25-Mar-11
Negative on 18-Mar-11
Positive on 3-Sep-10
Negative on 13-Aug-10
Positive on 6-Aug-10
Negative on 24-Jun-10
Positive on 18-Jun-10
Negative on 11-Jun-10
Positive on 5-March-10
Negative on 5-Feb-10
Positive on 11-Sept-09
