Let's take a look at some Guppy Multiple Moving Average charts (aka Guppy MMA, or GMMA) for a couple all-time highs and the market indexes.
As I mentioned a few weeks ago I have been watching China (FXI) for clues about the direction equities will be headed. Well as you can see below, the new trend is down. This index failed to make a higher high and now the short-term averages are distinctly below the long-term averages. This doesn't guarantee they will continue downward, but it does say that power has shifted to the sellers. Canada (EWC) did make a higher high, but now has the short-term below the long-term averages.
Here is the Nasdaq and Russell 2000. Both are testing the support of their long-term averages. Given the weakness in China and Canada, I am not optimistic for the bulls.
Finally, here are two of the best all time high stocks in recent months. MED is nose-diving (as I've mentioned several times) but EW is holding up. I'm keeping my eye on these two names. If leaders like these break down then that is one more strike against the bulls...if they regain strength, then I'll get more bullish.
No comments:
Post a Comment