• 846 days Will The ECB Continue To Hike Rates?
  • 847 days Forbes: Aramco Remains Largest Company In The Middle East
  • 848 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,248 days Could Crypto Overtake Traditional Investment?
  • 1,253 days Americans Still Quitting Jobs At Record Pace
  • 1,255 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,258 days Is The Dollar Too Strong?
  • 1,258 days Big Tech Disappoints Investors on Earnings Calls
  • 1,259 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,261 days China Is Quietly Trying To Distance Itself From Russia
  • 1,261 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,265 days Crypto Investors Won Big In 2021
  • 1,265 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,266 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,268 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,269 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,272 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,273 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,273 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,275 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…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Stock Barometer

Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

Contact Author

  1. Home
  2. Markets
  3. Other

Dollar Dives

5/6/2014 5:41:05 AM

Good morning Traders,

Monday brought us a gap down followed by a rally back to highs. This pattern can be bullish, but bigger picture we have the dollar taking a hit in the futures market. This dollar weakness can be concerning, but so far markets are shrugging it off. Today we will take a look at sentiment and some McLellan oscillator data:

Generally speaking, when bearish sentiment is building (heading lower) it results in a move lower in the market. The longer that sentiment builds without being reflected in price action, the more bullish it can be. The fact that the SPY is STILL hanging around near highs is bullish. But that can break at any point. So let's look behind the sentiment.

Cumulative Bearish Sentiment Chart

I'm a big fan of data telling the story and NOT the news. So let us look at the NYSE a little more closely:

NYSE McClellan Oscillator Chart

This view of the McLellan oscillator is bearish as it sits below zero. So the question is, if the market breaks lower here, will there be more damage in the NYSE or the Nasdaq?

McClellan Oscillator NASDAQ Chart

Note there are a couple of interpretations of this data. First is the positioning above and below zero as being bullish or bearish. Next is if the indicator settles above or below. So a reversal lower may not be bearish as it could hold above the zero level.

Now the above looks at breadth, how about if you apply it to volume?

McClellan Oscillator NASDAQ Volume Chart

We see that volume is confirming here on the Nasdaq. That head and shoulder's pattern is looming though...

As a heads up, you can access all our charts in our IRG Market Timing Research for only 9.95 a month. You can even use them in your own publications as this research is quickly becoming very popular with other newsletter writers... Visit www.stockbarometer.com and scroll to the bottom of the page for the subscribe links.

And finally, the barometer, which drives our advice in the DSB:

Daily Stock Barometer Primary System Chart

So we remain in Buy Mode, cautious that today is a key reversal date. Also cautious that the crowd is no longer calling for a correction, which leaves the market even more exposed to one. We'll have more on that later in the week as tomorrow we start publishing our key weekly indicators.

Good trading!

 

Back to homepage

Leave a comment

Leave a comment