Point & Go Figure: Midweek Market Review, IBM
I'm on the ropes? Ya sure?
Editor's Note: To learn more about Point & Figure Basics, visit our Technicals Section
The short-term conditions remain largely negative for the majority of stocks as the NYSE and Nasdaq Composite Percent Above 50-day Moving Average Indicators are both still in columns of Os.
More narrow indicators have improved, however. The Dow Jones 30 Industrials showed enough improvement yesterday to change columns to Xs in both the Bullish Percent and Percent Above 50-day MA Indicator. The Nasdaq-100 50-day MA indicator is also now positive, though the Bullish Percent remains negative. And the S&P 500 50-day MA reversed back up though its Bullish Percent remains negative as well.
These reversals in the 50-day MA indicator are typical of flat-lining moving averages. It takes very little movement for stocks to cross back and forth above a flattening 50-day moving average.
Meanwhile, the High-Low Index for the NYSE and Nasdaq Composite remain negative at high-risk levels.
The high-risk levels of most short-term indicators raises further the potential for very negative action across the board for stocks. The NDX and SPX Bullish Percent charts are both negative.
The long-term Bullish Percents for the NYSE and Nasdaq Composite as a whole remain positive (in a column of Xs), but continue to show the longer-term pattern of diminished participation and lower highs dating back to their 2003 and 2004 peaks. The NYSE is now about 2% from a reversal to negative. The Nasdaq Comp is more than 5% away.
Chart courtesy Thomson Financial
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter