OCT 30 INDEX UPDATE
------------------------------
Short-term technical readings:
DOW - NEGATED CLASS 1 SELL SIGNAL(technical breakout)
SPX - upper midrange
OEX - midrange
NAZ - lower midrange
NDX - lower midrange
VIX - 27.86, midrange
PUT:CALL RATIO - .58
Except for the DOW, the rest of the major indices are in the midrange, which is the FLIP-of-the-COIN territory, which is also supported by the reading on the VIX and the PUT:CALL at .58, which is neutral territory.
What was very noticeable was the EXTREME SECTOR ROTATION where money was flowing from the NAZ into the DOW. With the NAZ/NDX in the lower midrange - if the NAZ/NDX were to continue lower, I would get a CLASS 1 SELL signal in 2 days.
As for tomorrow, I dont have a CLUE!!! Does the DOW continue up at the expense of the NAZ, or does the NAZ start to catch up.
Although Im in no way sure, per out website mutual fund account we added a small UOPIX(long-NDX) position, and are now biased to the long side. Took such action since I felt that if the money was to start to flow fromt the DOW to the NAZ, there could be another 200+ point day in the NAZ.
Although the NAZ is looking week, I am suspecting that it may be further strengthening the support at 3000, for at least the short-term. The selling on lower volume today is a hint that a short-term bottom could be nearby.
Subjectively, the media has brought up the topic often, and it is well known/accepted that NOV-APRIL is seasonally more positive, and that NOV/DEC is commonly accepted as strong up months. Im not saying that it will or it wont, but do feel that that some will attempt to start it off right. Whether it lasts or not, I will look for clues later.
Per out DIVERGENCE INDICATOR, we are still getting NEGATIVE divergence on the DOW implying that it should start to pullback. As mentioned yesterdy, the pullback/flatness should start within about 2 days. Neutral on the NAZ and SPX |
