|
PART 5
 
The DJIA and the SP500 have recovered two
thirds of the losses they experienced between 9-17 and 9-21.
However, the A/D and Cumulative volume have only recovered one
third, what does that mean? It means people are chasing the same
few stocks, and there is no real strength underneath the
surface, because most stocks are ot participating with the same
enthusiasm as the stocks in the DJIA, and the large Caps in the
SP500.
 
The McClellan Oscillators are back where they
were in January, and May of this year, without even the benefit
of having formed a "bottom" In the absence of a
"positive catalyst" we do not see why they will break
thru now.
 
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
6
|
