The US and Canadian stock markets have had back-to-back good weeks and the major indices now sit above their key moving averages (for instance:
SPY,
QQQQ, IWM, and
EWC). Maybe I care too much about what happens with the chinese stock market, I don't know, but I have been watching
FXI closely and it continues to make lower-lows while failing to make a higher-high. See the chart below for what I mean:
Now, taking a look at the Point-and-Figure chart below we can see that the most recent low is an important one because it sits squarely on the support trend-line. If
FXI does not get support at it's recent low (around 37) then the uptrend will be broken on the P&F chart.
There's a reason for the "
M" in
CANSLIM: if the market isn't making higher highs, it's much more difficult to find big winners among the all-time highs.
No comments:
Post a Comment