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Point & Go Figure: Field Position Overview


Let the games begin.


The short-term conditions remain at very high-risk levels according to point and figure indicators. The pattern of lower lows and lower highs persists for both the NYSE and Nasdaq Composite Percent Above 50-day Moving Average Indicators and both of those reversed down to negative with Friday's action.

The High-Low Index for the NYSE and Nasdaq Composite are positive (in columns of Xs), although the NYSE High-Low was down more than 3% on Friday.

Given the persistent high risk level of the point & figure indicators both short and long-term, I thought it would be useful today to put these indicators in context by reviewing the field position of the major market indices based on monthly charts with DeMark indicators overlaid.

The charts below show that, according to Thomson Financial's DeMark counts we have monthly DeMark sell signals in the Dow Jones Industrials, the S&P 500, the Nasdaq-100 and the Russell 2000 simultaneously. We did not see this type of bearish alignment occur even during 1999.

Meanwhile, the PnF indicator field position is also in alignment with the DeMark signals. The S&P 500 Bullish Percent is already negative, as is the NDX Bullish Percent. The broader NYSE and Nasdaq Composite indicators are in Xs, but the field position is flashing a high risk warning sign as is the strong bearish divergence dating back to January 2004 showing long-term lower highs even as most market measures move higher.

Dow Jones Industrial Average Monthly
13 Sell signal for TD-Combo

S&P 500 Monthly
9-13-9 sell signal for S&P 500 on monthly chart

Nasdaq-100 Monthly
9-13-9 for NDX

Russell 2000 Monthly
TD-Sequential 13 just registered for RUT

Charts courtesy Thomson Financial.

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No positions in stocks mentioned.

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