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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

Short-term Overview:

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.

Long-term Overview:
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.

Charts of Interest:
IBM, three views:

1x3 chart, courtesy

.5x3 chart, courtesy

Chart courtesy Thomson Financial

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No positions in stocks mentioned.

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