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PART 4
 
Take a good look at the A/D line and the
Cumulative Volume for NASDAQ. Notice the similarities in the
current formation, between the bottom in January, and the tops
in February, and March. We think, that given how overbought the
market is at the moment, the odds favor a pullback. That is why
in our trading accounts we took a 30% short position in the QQQ.
 
 
The
McClellan Oscillators and Summation Indexes, are also confirming
that the bottoming process has started, but the
"bottom" is probably several trading days away from being
formed. Notice the huge disparity between the improvement in the
Oscillators, and the movement in the Summation Indexes. The
Oscillators are back near their highs of the year, while
the Summation Indexes have only turned up the past two days.
This kind of disparity between these two indicators, has always
resulted in a pull back. We do not see why this time will be any
different.
Click here for PART
5
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