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 |
IBD is the first to admit that their "confirmed rally" signals only work 70-80% of the time. Most of those false signals undoubtedly occur during bear markets or severe corrections like we're experiencing now. I find it reassuring to have a reliable source like IBD offering well considered advice on the market.
The market pullback over the last couple days seems like healthy technical behavior as the SPX broke out above resistance and is now retesting the breakout. The excellent level of new lows confirms that the decline has been a pullback in a fresh uptrend.
More evidence that the recent declines are a short-term, overbought retrace in an intermediate uptrend... the bullish percents on the two major exchanges ticked up yesterday and again today while prices declined. That is a bullish divergence. Its been seven days in a row that the bullish percents have increased, and from excellent field position. The NASDAQ bp has now broken slightly above the prior high.
