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PART 3
 
The 10 day Summation Indexes have gone from "fully
oversold" to "fully overbought" in a matter of
just 8 trading days. That is highly unusual, and it underscores
the risk that currently exists in the market. More importantly,
these kinds of rallies are usually seen in counter-trends within
bear markets
 
The 20 day Summation Indexes also traveled in 8 days the
same distance it had taken them since May 22nd to cover on the
downside. We have designed these indicators, so we have intimate
knowledge of how they work. This kind of behavior indicates a
market with lot's of instability underneath the surface.
 
The 50 day Summation Indexes are still below zero,
indicating that the short-term strength can easily be undermined
by intermediate term weakness, which is still present underneath
the surface. Notice that both these indexes are up against
resistance. If the market is to pull back, this should be the
point to do it.
PART 3a
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