I haven’t addressed the recent market action in some time. Here are some recent thoughts:
• The S&P 500 has been stuck in a range the past 3 months between 1,000-1150; The next major resistance will be at the flattish 200-day moving average of 1113.
• NYSE new highs have improved; new lows are evaporating; NYSE cumulative breadth is close to making a new all-time high;
• The percentage of US indexes above their 200-day moving average has also improved
• John Roque notes that the DJIA, Nasdaq, Dow Transports, Dow Utilities, S&P 600 and S&P 400 all have upward-sloping 200-day moving averages. He adds “In short, major downside market action usually does not occur with indexes either above/supported by upward-sloping 200-day moving averages.”
FusionIQ ‘s institutional commentary can be found here: Market Continues Oversold Rally; Seasonal Trends Hold.