Wednesday Market Momentum Breadth Volume
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
These are Ken Tower's recent comments on the market... "Our long term posture remains defensive as investors continue to lower economic growth expectations. This deterioration has produced significant declines in equity markets around the world. At present we see no reason to believe this process is over and continue to overweight fixed income positions while underweighting equities." He goes on to say that he is optimistic about stock prices in the short-term and remains open to signals that the longer-term is also improving.
Above is a chart by Declan Fallond that he uses to monitor the market, and it is looking favorable for stock prices at the moment.
This chart looks bullish in the long term timeframe. The RSI is still above the 50-level and hasn't yet reached down to where previous serious price corrections found support in the past. Prices broke out in 2006, and then retraced this year back to the support of the original break out level. Further support exists from the moving average and uptrend line. The long-term bull market is being challenged but is still intact. I continue to believe that this year's lows will be retested in the weeks ahead.
Why is the TBill rate breaking below 2%? Money is flowing into the safety of TBills, and its not what you want to see when you are looking for confidence to return to the markets.
