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Point & Go Figure: BBH, CAT, LRW, Sensex

By

Train of Fools?

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Market Overview:

The short-term conditions remain positive but are still at high-risk levels. The pattern of lower lows and lower highs persists for both the NYSE and Nasdaq Composite Percent Above 50-day Moving Average Indicators.

The High-Low Indices for the NYSE and Nasdaq Composite are positive (in columns of Xs).

The longer-term bullish percent Indices for the NYSE and Nasdaq Composite are both still in Xs, but the larger pattern of lower highs there also remains intact. The more narrow S&P 500 and Nasdaq-100 Bullish Percents are both still negative, and not even close to a reversal higher.

The picture of high risk these indicators paint continues to frustrate as the market indices make new highs in some cases. But a look back at 1999 shows a similar frustration period as broad indices made new highs on divergent indicators throughout the year before a downside resolution occurred.

Charts of Interest:
Biotech HOLDRs (BBH)
(Chart courtesy StockCharts.com)
The BBH is nearing a PnF trendline break, but note the levels of support below, at 182, then the price objective at 176...

Biotech HOLDRs (BBH)
(Chart courtesy Thomson Financial)
There are TD-Sequential and TD-Combo buy setups active and a potential TD-Combo 13 buy signal could occur within the next few sessions.

Caterpillar (CAT)
(Chart courtesy StockCharts.com)
CAT has met the PnF price objective of 70 and is now bouncing between 73 and 76. A move to 71 on a PnF basis would be the first sell signal since October 2005.

Caterpillar (CAT)
(Chart courtesy Thomson Financial)
CAT has failed to reach the March high and has now registered a TD-Sequential 13 sell signal.

Labor Ready (LRW)
(Chart courtesy
StockCharts.com)
The 26 level has proven formidible for LRW since July 2005...

Labor Ready (LRW)
(Chart courtesy Thomson Financial)
Meanwhile, a TD-Sequential 13 sell signal has been registered up on the most recent failure to break through 26.
India Sensex
(Chart courtesy Thomson Financial)
How high can the Sensex go? No idea, but this chart plotting the Sensex to the Nasdaq-100 on a relative scale is... surprising.

No positions in stocks mentioned.

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