Good morning. We've got a new week on tap so let's get started with a review of my key market models/indicators and see where we stand. To review, the primary goal of this exercise is to try and remove any subjective notions about what "should" be happening in the market in an attempt to stay in line with what "is" happening in the markets. So, let's get started.
The State of the Trend
We start our review each week with a look at the "state of the trend." These indicators are designed to give us a feel for the overall health of the current short- and intermediate-term trend models.
- The short-term Trend Model remains positive, however the march higher is showing signs of fatigue.
- Both the short- and intermediate-term Channel Breakout Systems remain on their 8/22 buy signals.
- The intermediate-term Trend Model is in good shape - albeit a bit extended.
- The long-term Trend Model remains positive.
- The Cycle Composite remains negative AND out of sync with the trend of the market at this time. Note that the composite calls for one more significant move to the downside over the next two weeks before a bottoming process.
- The Trading Mode models finally all agree that stocks are trending. But, the levels of the indicators aren't exactly robust.
- The bottom line as far as price is concerned is the trend is up, but is looking a little tired.
The State of Internal Momentum
Next up are the momentum indicators, which are designed to tell us whether there is any "oomph" behind the current trend...
- Both the short- and intermediate-term Trend and Breadth Confirm Models are positive, which suggests the march higher is "in gear."
- The Industry Health ...