• 489 days Will The ECB Continue To Hike Rates?
  • 489 days Forbes: Aramco Remains Largest Company In The Middle East
  • 491 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 891 days Could Crypto Overtake Traditional Investment?
  • 895 days Americans Still Quitting Jobs At Record Pace
  • 897 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 900 days Is The Dollar Too Strong?
  • 901 days Big Tech Disappoints Investors on Earnings Calls
  • 902 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 903 days China Is Quietly Trying To Distance Itself From Russia
  • 904 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 908 days Crypto Investors Won Big In 2021
  • 908 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 909 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 911 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 911 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 915 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 915 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 916 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 918 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Technical Market Report

The good news is:
  * The current decline appears to be heading to an extreme whichwill provide a good long side entry, soon.

Last week I was somewhat optimistic because new lows diminished in the previous weeks rally. That optimism was premature. New lows increased every day except Thursday on the NASDAQ and every day except Tuesday on the NYSE. New lows are now at threatening levels on both exchanges.

The chart below shows the NASDAQ composite with the new low indicator. The new low indicator is a 10% trend (19 day EMA) of NASDAQ new lows plotted on an inverted Y axis.

It is prudent to wait until there have been five consecutive up days on the new low indicator before taking a long position. The late July rally in the indicator lasted four days.

A summation index (SI) is a running total of oscillator values. When the oscillator is positive its SI rises, when the oscillator is negative its SI falls. SI's do not lead, but do a good job of smoothing the often violent action of oscillators and prices.

The chart below shows SI's derived from oscillators of NASDAQ advances - declines, new highs - new lows and upside - downside volume. The SI's began turning upward at the end of July, but the rally failed. I have circled another period in late February when there was a similar occurrence.

The chart below shows the NASDAQ composite and a 4% trend (55 day EMA) of downside volume. The indicator is plotted on an inverted Y axis so increasing downside volume moves the indicator downward. There have been other peaks in the indicator this year that have corresponded with the March low and the April-May low. It would be nice to see this indicator reach the March and April-May levels because that has corresponded with the earlier "get me out at any price" lows.

There has been no evidence of a bottom and the seasonal bias for the second week in August is slightly negative.

I expect the major indices to be lower on Friday August 13 than they were on Friday August 6.

Gordon Harms produces a Power Point on current market conditions for our monthly FastTrack user group meetings. You can download the current one from: http://www.guaranteed-profits.com.

Back to homepage

Leave a comment

Leave a comment