There is no change in the indicator summary as all ten indicator groups remain in bull mode. The NYSE AD Line surged to yet another 52-week high and the Nasdaq AD Volume Line moved sharply higher the last six weeks. All nine Bullish Percent Indices are above 60% and seven of the nine are at or above 80%. Small-caps joined the party this month as the $RUT:$OEX ratio broke out and moved higher the last few weeks. Relative strength in both small-caps and techs is a positive for the market overall. The current overbought condition is the only negative out there. At this point, overbought means the chances of a pullback or consolidation are above average. However, everybody and their dog are aware of this situation, which means Mr. Market may not oblige.
- AD Lines: Bullish. The Nasdaq AD Line broke the early December high, the July trendline and the 63-day EMA. The NYSE AD Line forged a 52-week high this week and remains in a strong uptrend.
- AD Volume Lines: Bullish. The Nasdaq AD Volume Line and the NYSE AD Volume Line broke their December and October highs with strong moves the last 5-6 weeks.
- 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. All nine Bullish Percent Indices are above 60%.
- VIX/VXN: Bullish. The CBOE Volatility Index ($VIX) and the Nasdaq 100 Volatility Index ($VXN) have been trending lower since early October. Decreasing volatility is positive for the stock market.
- Trend-Structure: Bullish. DIA, IWM, MDY, QQQ and SPY are above their October highs and in clear uptrends.
- SPY Momentum: Bullish. RSI is in its bull range (40-80), the Aroon Oscillator surged back above +50 and MACD(5,35,5) is in positive territory.
- Offensive Sector Performance: Bullish. The Consumer Discretionary SPDR (XLY) and Technology SPDR (XLK) broke above their summer highs. The Industrials SPDR (XLI) is above its October high and the Finance SPDR (XLF) is challenging this high.
- 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 as small-caps came to life he last few weeks.
- 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 11-Sept-09
Negative on 5-Feb-10
Positive on 5-March-10
Negative on 11-Jun-10
Positive on 18-Jun-10
Negative on 24-Jun-10
Positive on 6-Aug-10
Negative on 13-Aug-10
Positive on 3-Sep-10
Negative on 18-Mar-11
Positive on 25-Mar-11
Negative on 17-Jun-11
Positive on 30-Jun-11
Neutral on 29-Jul-11
Negative on 5-August-11
Positive on 28-October-11
Negative on 23-November-11
Positive on 3-December-11
Negative on 16-December-11
Positive on 30-December-11
