Market Update

More or less the same story as the last update (Sept 28). Still uptrends in stocks, and a downtrend in the USD. Notably, Long-bonds have flipped from up-to-down and DecisionMoose switched from Long-Bonds to Pacific ex-Japan stocks last weekend (EEP), so presumably he sees more upside in stocks than bonds.

Trend-tables are based on data up to yesterday's close, but that shouldn't change the story much.

Trend Direction by Broad Index 20-Oct-2010 (06-Oct-2010)
Index	Slope of 20-day SMA	Slope of 50-day SMA	Slope of 200-day SMA	Slope of 200-day EMA
QQQQ Nasdaq	UP (up)	UP (up)	UP (up)	UP (up)
SPY S&P500	UP (up)	UP (up)	UP (up)	UP (up)
IWM Russell 2000	UP (up)	UP (up)	UP (up)	UP (up)
EWC Canada	UP (up)	UP (up)	UP (up)	UP (up)
EFA MSCI EAFE	UP (up)	UP (up)	FLAT (up)	UP (up)
FXI China	UP (up)	UP (up)	UP (up)	UP (up)
GLD Gold	UP (up)	UP (up)	UP (up)	UP (up)
UUP US Dollar	DOWN (down)	DOWN (down)	FLAT (down)	DOWN (down)
TLT US Long Bonds	DOWN (up)	UP (up)	UP (up)	UP (up)
Numbers in parentheses are from 10 trading-days ago  SMA = Simple Moving Average, EMA = Exponential Moving Average

More highs than lows on all time-frames.

US Stocks Making New Highs and Lows 21-Oct-2010
Period	New Highs	New Lows	Hi vs Lo	Hi/Lo Ratio
20 day1	941	265		3.6
50 day1	836	78		10.7
52 week1	360	32		11.3
All-Time stocks only2	58	12		4.8
1 Out of 5069 US Stocks on FINVIZ  2 From uglychart.com based on the previous close (funds removed)

A lot of stocks are overbought, but fewer at the extremes compared to Sept 28.

US Stocks in Overbought and Oversold Conditions 21-Oct-2010
Level	Overbought	Oversold	Overbought vs Oversold	OB/OS Ratio
Mild RSI(14)=60 vs 40	1850	311		5.9
Moderate RSI(14)=70 vs 30	495	57		8.7
Extreme RSI(14)=80 vs 20	79	9		8.8
Ridiculous RSI(14)=90 vs 10	6	1		6.0
1 Out of 5069 US Stocks on FINVIZ

More than 60% of US stocks are above the 200-day, which is bullish.

US Stocks in Relation to their Moving Averages 21-Oct-2010
Worden's T2108 on 21-Oct-2010 = 77.99

Lackluster action in the Financials continues, and a couple other sectors show signs of flattening...

Trend Direction by Sector 20-Oct-2010 (06-Oct-2010)
Index	Slope of 20-day SMA	Slope of 50-day SMA	Slope of 200-day SMA	Slope of 200-day EMA
XLY Consumer Discretionary	UP (up)	UP (up)	UP (up)	UP (up)
XLP Consumer Staples	UP (up)	UP (up)	UP (up)	UP (up)
XLE Energy	UP (up)	UP (up)	FLAT (up)	UP (up)
XLF Financial Services	FLAT (up)	FLAT (flat)	FLAT (flat)	FLAT (flat)
XLV Health Care	UP (up)	UP (up)	FLAT (flat)	UP (up)
XLI Industrial	UP (up)	UP (up)	UP (up)	UP (up)
RWR US Real Estate	UP (up)	UP (up)	UP (up)	UP (up)
RWX Intl Real Estate	UP (up)	UP (up)	UP (up)	UP (up)
XLK Technology	UP (up)	UP (up)	FLAT (up)	UP (up)
IYZ Telecom	UP (up)	UP (up)	UP (up)	UP (up)
XLU Utilities	UP (up)	UP (up)	UP (flat)	UP (up)
Trend in parentheses is from 10 trading-days ago  SMA = Simple Moving Average, EMA = Exponential Moving Average