• 10 hours Tesla Set To Deliver 1 Million Electric Vehicles Next Year
  • 1 day Holiday Spending Already Soaring Amid Pandemic
  • 2 days Another Stock Market Crash Could be Looming
  • 3 days Trump Loses Another Leg Of The WeChat Battle
  • 4 days DOW Plunges Amid WInter COVID-19 Surge Fears
  • 5 days Big Profits Are No Longer The Top Priority For Oil Investors
  • 6 days Banksy’s Littered ‘Monet’ Sells for $10M
  • 8 days Three Renewable Energy IPOs To Watch
  • 9 days Bitcoin Nears $13,000 As PayPal Joins The Crypto Fray
  • 9 days DOJ Declares The Obvious: Google Is A “Monopoly”
  • 11 days Alibaba Is About To Make History Again
  • 12 days Robinhood Users Are Latest Target Of Pandemic Hackers
  • 14 days The Hydrogen Boom Will Provide A $200B Boost To Wind And Solar Energy
  • 15 days Will The 5G Rollout Overshadow This Major Merger?
  • 16 days Corporate Bitcoin Holdings Boost Crypto Confidence
  • 17 days Indonesia Rolls Out Augmented Reality Innovation To Combat COVID
  • 17 days Banks Are Getting Rich On Pandemic Overdrafts
  • 18 days The Real Reason China Is Betting Big On Renewables
  • 18 days Europe Wants To End The Big Tech Monopoly
  • 19 days New Breakthrough Could Transform Rare Earth Mining
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…

  1. Home
  2. Markets
  3. Other

Technical Market Report for February 27, 2016

The good news is:
• The market has had 2 consecutive winning weeks with the secondaries outperforming the blue chips.


The Negatives

New lows have remained a little high, especially on the NASDAQ where new lows outnumbered new highs every day last week except Monday.

The first chart covers the past 6 months showing the NASDAQ composite (OTC) in blue and a 40% trend (4 day EMA) of NASDAQ new highs divided by new highs + new lows (OTC HL Ratio), in red. Dashed vertical lines have been drawn on the 1st trading day of each month. Dashed horizontal lines have been drawn at 10% levels for the indicator, the line is solid at the 50%, neutral level.

OTC HL Ratio rose a bit last week, but remained below the neutral level.

OTC and OTC HL Ratio Chart


The positives

On the NYSE new highs outnumbered new lows on 3 of the 5 days.

The chart below is similar to the one above except it shows the S&P 500 (SPX) in red and NY HL Ratio, in blue, has been calculated from NYSE data.

NY HL Ratio managed to climb into positive territory last week.

SPX and NY HL Ratio Chart

The next chart covers the past 6 months showing the SPX in red and a 10% trend (19 day EMA) of NYSE new lows (NY NL) in blue. NY NL has been plotted on an inverted Y axis so decreasing new lows move the indicator upward (up is good).

NY NL continued its sharp move upward.

SPX and NY NL Chart

The next chart is similar to the one above except is shows the OTC in blue and OTC NL, in orange, has been calculated from NASDAQ data.

OTC NL is showing a similar pattern to NY NL.

OTC and OTC NL Chart

The next chart covers the past 4 years showing the SPX in red and a 5% trend (39 day EMA) of NYSE volume of advancing issues (NY UV) in green. Dashed vertical lines have been drawn on the 1st trading day of each year.

Since the 1st of the year we have been seeing the highest volume of advancing issues in over 4 years.

SPX and NY UV Chart


Seasonality

Next week includes the last trading day of February and the 1st 4 trading days of March during the 4th year of the Presidential Cycle. The tables below show the daily change, on a percentage basis for that period.

OTC data covers the period from 1963 to 2015 while SPX data runs from 1928 to 2015. There are summaries for both the 4th year of the Presidential Cycle and all years combined.

The coming week has been volatile with large gains some years and large losses in other years.

Report for the last day of February and first 4 days of March.
The number following the year represents its position in the Presidential Cycle.
The number following the daily return represents the day of the week;
1 = Monday, 2 = Tuesday etc.

OTC Presidential Year 4
  Day1 Day1 Day2 Day3 Day4 Totals
1964-4 -0.27% 5 0.56% 1 -0.05% 2 0.13% 3 0.00% 4 0.38%
1968-4 0.02% 4 -0.94% 5 -0.63% 1 0.59% 2 -3.92% 3 -4.87%
1972-4 0.35% 2 0.73% 3 0.23% 4 0.48% 5 0.54% 1 2.33%
 
1976-4 -1.30% 5 -0.01% 1 0.32% 2 -0.41% 3 -0.58% 4 -1.98%
1980-4 0.36% 5 -0.73% 1 -0.96% 2 -1.56% 3 -2.81% 4 -5.70%
1984-4 0.01% 3 0.37% 4 0.80% 5 -0.66% 1 -0.64% 2 -0.11%
1988-4 0.98% 1 0.10% 2 0.83% 3 0.44% 4 0.36% 5 2.71%
1992-4 -0.08% 5 0.32% 1 -0.19% 2 -0.62% 3 -1.32% 4 -1.90%
Avg -0.01% 0.01% 0.16% -0.56% -1.00% -1.40%
 
1996-4 -0.68% 4 -1.27% 5 -0.11% 1 1.10% 2 -0.46% 3 -1.42%
2000-4 2.60% 2 1.86% 3 -0.62% 4 3.37% 5 -0.20% 1 7.01%
2004-4 -0.14% 5 1.38% 1 -0.88% 2 -0.31% 3 1.07% 4 1.12%
2008-4 -2.58% 5 -0.57% 1 0.07% 2 0.55% 3 -2.30% 4 -4.82%
2012-4 -0.67% 3 0.74% 4 -0.43% 5 -0.86% 1 -1.36% 2 -2.57%
Avg -0.29% 0.43% -0.39% 0.77% -0.65% -0.14%
 
OTC summary for Presidential Year 4 1964 - 2012
Averages -0.11% 0.20% -0.12% 0.17% -0.89% -0.76%
% Winners 46% 62% 38% 54% 23% 38%
MDD 3/6/1980 5.94% -- 3/6/1968 4.86% -- 3/6/2008 4.76%
 
OTC summary for all years 1963 - 2015
Averages -0.10% 0.19% 0.02% 0.34% -0.16% 0.28%
% Winners 47% 63% 51% 68% 54% 58%
MDD 3/5/2009 6.60% -- 3/6/1980 5.94% -- 3/6/1968 4.86%
 
SPX Presidential Year 4
  Day1 Day1 Day2 Day3 Day4 Totals
1928-4 0.58% 3 0.23% 4 0.00% 5 0.69% 6 0.86% 1 2.37%
1932-4 -0.72% 1 0.72% 2 4.31% 3 0.00% 4 0.11% 5 4.43%
 
1936-4 -0.34% 6 1.51% 1 1.42% 2 0.27% 3 0.13% 4 2.99%
1940-4 -0.16% 4 -0.58% 5 0.17% 6 0.08% 1 0.50% 2 0.00%
1944-4 -0.59% 2 0.42% 3 0.08% 4 0.17% 5 0.00% 6 0.09%
1948-4 0.50% 6 0.50% 1 0.64% 2 0.07% 3 -0.64% 4 1.08%
1952-4 -0.13% 5 0.09% 6 0.04% 1 1.67% 2 0.13% 3 1.80%
Avg -0.14% 0.39% 0.47% 0.45% 0.02% 1.19%
 
1956-4 -0.20% 3 0.44% 4 0.59% 5 0.55% 1 -0.04% 2 1.34%
1960-4 -0.07% 1 -0.20% 2 -0.70% 3 -1.51% 4 -0.38% 5 -2.86%
1964-4 0.23% 5 0.22% 1 0.32% 2 -0.19% 3 -0.01% 4 0.57%
1968-4 -0.80% 4 -0.28% 5 -1.34% 1 -0.23% 2 1.76% 3 -0.89%
1972-4 0.36% 2 0.73% 3 -0.03% 4 0.58% 5 0.77% 1 2.41%
Avg -0.10% 0.18% -0.23% -0.16% 0.42% 0.11%
 
1976-4 -0.40% 5 0.31% 1 0.54% 2 -0.58% 3 -1.06% 4 -1.19%
1980-4 1.17% 5 -1.02% 1 0.25% 2 -1.46% 3 -2.23% 4 -3.30%
1984-4 0.15% 3 0.72% 4 0.66% 5 -0.85% 1 -1.04% 2 -0.35%
1988-4 2.04% 1 -0.22% 2 0.28% 3 -0.04% 4 -0.22% 5 1.85%
1992-4 -0.28% 5 -0.06% 1 0.10% 2 -0.85% 3 -0.69% 4 -1.79%
Avg 0.54% -0.05% 0.37% -0.76% -1.05% -0.95%
 
1996-4 -0.67% 4 0.62% 5 1.00% 1 0.77% 2 -0.58% 3 1.13%
2000-4 1.36% 2 0.94% 3 0.19% 4 1.98% 5 -1.27% 1 3.20%
2004-4 0.00% 5 0.96% 1 -0.59% 2 0.17% 3 0.33% 4 0.87%
2008-4 -2.71% 5 0.05% 1 -0.34% 2 0.52% 3 -2.20% 4 -4.68%
2012-4 -0.47% 3 0.62% 4 -0.32% 5 -0.39% 1 -1.54% 2 -2.11%
Avg -0.50% 0.64% -0.01% 0.61% -1.05% -0.32%
 
SPX summary for Presidential Year 4 1928 - 2012
Averages -0.05% 0.31% 0.33% 0.06% -0.33% 0.32%
% Winners 41% 73% 68% 55% 36% 64%
MDD 3/6/2008 4.63% -- 3/6/1980 4.41% -- 3/4/1960 2.83%
 
SPX summary for all years 1928 - 2015
Averages 0.04% 0.15% 0.17% 0.23% 0.10% 0.67%
% Winners 56% 64% 55% 62% 53% 65%
MDD 3/5/2009 9.34% -- 3/6/2008 4.63% -- 3/6/1980 4.41%


Money supply (M2)

The charts were provided by Gordon Harms. Money supply growth leveled off last week.

SPX and M2 Money Supply Chart


Conclusion

New lows continued to decline and the secondaries continued to lead the blue chips upward last week.

I expect the major averages to be higher on Friday March 4 than they were on Friday February 26.

This report is free to anyone who wants it, so please tell your friends. They can sign up at: http://www.stockmarket-ta.com/signup.html. If it is not for you, reply with REMOVE in the subject line.

These reports are archived at: http://www.safehaven.com/

Good Luck,

YTD W 5 / L 3 / T 0

 

Back to homepage

Leave a comment

Leave a comment