The Nasdaq Summation Index turned down at the beginning of October and the 10 day moving average remains below the 50dma. If fact, with price significantly above the May level, the NASI has not risen. It is quite possible the big boyz have been selling slowly since May.
The Nasdaq Advance minus Decline line is slightly overbought. Another big up day or two should move the market to significantly overbought.
Price yesterday made a nice move to a new 2009 high on better than average volume. The buyers were not as interested as the sellers were at the end of September, but a couple of follow through days would signal a new wave of institutional buying. At this point, I only see a lack of institutional selling and little commitment to buy shares at higher prices.
Charts courtesy of Stockcharts.com
OT, there’s a long article on the application of time cycles to markets (and some other stuff) in the Oct 12 New Yorker, “The Secret Cycle.” Not a must read, but kinda interesting to see the topic discussed in a mainstream pub. Here’s an abstract…
http://www.newyorker.com/reporting/2009/10/12/091012fa_fact_paumgarten
Thanks, Rob. A lot of talk about Martin Armstrong in the ether…