Point & Go Figure: MEE, T, OSIP, NDX, RUT
C'mon, throw a bull a bone once n
The short-term conditions remain negative with the Percent Above 50-day Indicator for the NYSE, Nasdaq Composite, S&P 500, Russell 2000 and Dow Jones Industrial Average all negative and showing continued deterioration. Perhaps surprisingly, the Nasdaq-100 50-day MA indicator is in a column of Xs but it remains on a sell signal having exceeded a previous bottom on the chart during the last move down.
The High-Low Index for the NYSE remains negative, while the Nasdaq Composite High-Low Index declined again yesterday, but remains in Xs, still showing declining tops from the 2004 high.
The bullish percent indicator for the NDX remains negative and declined significantly again yesterday, by 3%. This continues the negative divergence we highlighted yesterday: deteriorating participation on 50-day MA crossovers.
The Bullish Percent for the NYSE and Nasdaq Composite remain positive, but continue to show the longer-term pattern of diminished participation and lower highs dating back to their 2003 and 2004 peaks.
Charts of Interest:
Massey Energy (MEE)
MEE broke a quadruple bottom recently. In fact, that is just the latest sell signal for this stock. MEE first broke down in October creating a downside objective of 34. The stock has not given a buy signal since the October breakdown.
(Chart courtesy Thomson Financial)
While T recently broke a quadruple top on a PnF chart, the stock yesterday completed a TD-Sequential 13 "Sell" signal. 25 should act as initial support (former resistance) on pulbacks.
OSI Pharmaceuticals, Inc. (OSIP)
OSIP has broken a tripe top with yesterday's move, now at 31 resistance. Support is 29.50.
The NDX has violated the trendline from the April 2005 lows, and the bounce back to test the bottom of that trendline was weak in intra-day terms yesterday. A move below 1650 to 1640 would suggest the initial downside target of 1610 is in play.
Russell 2000 (RUT)
A move below 714 (712 print intra-day) would bring into play the initial downside objective of 706.
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