- Rank: 36
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- Votes: 388
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- Last Update: 1 December 2021, 23:36
Market Breadth Analysis
General Market Commentary
Is the market afraid of the Omicron virus, or government responses to it, or was this just a normal market move? As you can see in the chart above, sometimes it drops to the blue line after a new high. So far, it all seems like a pretty run of the mill pullback.
Chart 108 indicates it was ripe for a pullback. But since the top indicator is not signaling, I am still expecting any pullback to be shallow and brief and the virus news was just an excuse.
Overall, I think the market is strong and November through January are historically the strongest months of the year.
Correction watch: Minimal risk for drop > 5%
101 Buy-and-Holders: long term bullish (but showing signs of weakening)
102 Investors: intermediate term bullish and coming off overheated condition (RSI>70)
103 Swing Traders: bullish -- more or less
105 Storm Track: micro term bearish (but this changes quickly)
106 Aggressive?: bearish
107 Defensive?: down = bullish
108 Top?: some topping indicated, but not expecting to be significant
109 Bottom?: no significant bottom indicated
111-113: Sectors (cap weight, EW, small cap)
114 Size & style
116 US Dollar
400-405: Factor ETF relative strength (RS)
5XX: ETFs for reference
"Trading in the Zone" by Mark Douglas about the mental game.
Note: Profile says PRO but I am an engineer. Updates on weekends.
"It is enough to identify prevailing conditions and respond to them as they change, without any need to predict." -- John Hussman
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