Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Point & Go Figure: Oil Service HLDRs, Nasdaq-100, Flextronics


Best trading advice? If it feels good, don't do it.


Market Overview:

The short-term Percent Above 50-Day Moving Average Indicators for most of the major averages remain at levels consistent with overbought conditions.

According to data through Tuesday's close from Investors Intelligence:

  • The S&P 500 50-day indicator is at 72.5% in Xs.
  • The Nasdaq-100 50-day indicator is at 80% in Xs.
  • The Russell 2000 50-day indicator is at 67.7% in Xs.
  • The Dow Jones Industrial Average 50-day indicator is at 83.3% in Xs.

Among other short-term indicators, the High-Low Index for the Nasdaq is in Os at 70%, consistent with overbought conditions and a move lower. The NYSE High-Low Index remains in Xs at 80%.

Meanwhile, the long-term index bullish percent readings are nearly all positive with the lone exception being the Dow Jones Industrial Average bullish percent, which remains sluggish and in a column of Os having completed a bearish catapult pattern.

The S&P 500 bullish percent reversed back to Xs a week ago.

The Russell 2000 is now in Xs but remains on a sell signal which suggests the primary bearish trend of diminished participation for all the index bullish percents of lower highs dating back to January 2004 is still in place.

The Nasdaq-100 is in Xs as well.

While the pattern of lower highs and diminished participation for the indices remains intact, the fact the bullish percents are in Xs must be respected. The short-term is now overbought, aligning with potential DeMark sell signals on the daily charts, so the next move lower will be important in judging whether the exhaustion point is merely corrective or impulsive.

Charts of Interest:

(Chart courtesy

The chart below (10x3 scale) shows the Nasdaq-100 having broken two consecutive double tops and testing resistance in the 1620 area. It will take a move to 1630 to break this resistance. But note the price target has been met. Combined with the overbought short-term indicators the NDX looks ripe for a reversal with support at 1600, then 1560. There are no pending DeMark TD-Sequential setups or spinals pending.

Oil Service HLDRs (OIH)
(Chart courtesy

The chart below shows the stairstep lower from the original long-term trendline break in June. Note the downside objective is now 118. Meanwhile...

Oil Service HLDRs (OIH)
(Chart courtesy Thomson Financial)

The daily chart shows a potential DeMark TD-Sequential (aggressive) buy signal upcoming (indicated with the purple 12 registering today). The primary trend is lower, but a tradable rally buying weakness may soon appear. Meanwhile, look for rallies to be capped by heavy resistance in the 130-134 area.

Flextronics (FLEX)
(Chart courtesy
The setup for FLEX shows the stock at PnF downtrend resistance, below the long-term downtrend line, in conjunction with a DeMark TD-Sequential sell signal.

The chart below shows FLEX on a sell signal, now testing downtrend resistance. It's taken quite a bit of energy to get to this point.

Flextronics (FLEX)
(Chart courtesy Thomson Financial)

Meanwhile, note the daily TD-Sequential sell signal registered yesterday. Prior 13s produced tradable moves lower.

< Previous
  • 1
Next >
Position in RUT/SPX equivalents

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.

Featured Videos