Internals continue to improve from oversold conditions but a
pause is likely. NASDAQ improvement suggests that after some digestion (backing
and filling), a summer rally can work higher. As such, expect choppy trade.
Improving internals suggest an upside resolution of the trading range.
Advancers-Decliners with Volume 2x 21-day MA
click for larger graphic
Source: Kevin Lane, Redwood Technimentals
The 10-day average (blue line) of the net above average
volume advancers (above average volume stocks trading up minus those trading
down) has moved back above the zero line suggesting that more stocks are
trading up on big volume than down – this is a positive change in a conditional
element.
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Quote of the Day:
“Every time everyone is talking about something, that is the time to
sell."
–George Lindemann
