Equity p/c ratio on Friday was .53. Still very low. Sure doesn't look like a bottom to me.
I agree. I guess I didn't make the point very clearly, but I found it somewhat unsettling that, after the indicator was finally heading in a bullish direction, put buying dried up after only a couple of hours of rallying. Voila: 0.53. Nonetheless, the 5-day MAV has climbed to 0.65 all week, despite the low one-day reading. I'm inclined to think that Monday's number will be 0.55 or lower, though.
As long as we keep getting these ultra-fast switches back to complacency, I don't see a real bottom either. I think we have to go much lower, especially in the SP500.
BTW, for those of you who don't know this, the SP500 contains roughly one-half of the Nasdaq 100 stocks, or, to put it another way, the NAZ100 accounts for 10% of the SP500 (but not exactly, because of capitalization weighting). I use primarily NYSE indicators and I plot them mostly versus the S&P, although I do track the Nasdaq Composite. Because of this inter-index overlap, I think I'm getting a pretty good read on tech and the NAZ. The S&P and the NAZ seem to move together anyway (although not necessarily in degree); the Dow appears to be more independent, but I stopped using the DJ30 over a decade ago.
A 30-stock index is only representative of, well, 30 stocks. |
