Key technical indicators are flip flopping like dying fish on a deck just before getting their heads cut off.
The screening measures don’t have the kind of setup they usually have when a short term rally phase is beginning.
Dip buyers madness swept the market today, returning the SPX to above the critical 1850 level.
Cycle screening measures turned lower 6 days ago. That’s a long string of declines.
The broad market indicators suggests that the market has a little more downside at least, but more data is needed on the 13 week cycle. The 10-12 month cycle appears to be rolling over into a down phase due to last 4-6 months.
This decline was a little scary because of the big negative divergences in a number of intermediate indicators that have preceded it. Those indicators are now on the verge of triggering clear sell signals. Sell signals flowing from large negative divergences are usually good indicators that significant corrections, or worse, are beginning. A number of…
The late day rally did not turn iffy technical indicators positive in spite of the slight gain in the S&P.
The market got a little uglier today as cycle screening measures continued to weaken, some broad market technical indicators edged to the sell side, and negative divergences persisted.
A number of indicators are in patterns that create important inflection points. They could signal another short term pullback, or that the rally has much farther to go.
There were a few technical chinks behind the small uptick in the market averages on Friday. Cycle screening measures were a tad weaker and negative divergences in intermediate cycle oscillators show no signs of resolving positively yet. The 6-7 week cycle is due for a down phase and its projection of 1882 was hit, but…