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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (13291)	7/26/2012 1:06:49 AM
From: John Pitera	Read Replies (2) \| Respond to of 33421

The Hindenburg omen triggered with the sharp decline on Monday. First, notice that new highs and news lows as a percentage of total issues surged above 2.8%. Second, notice that new highs were less twice the number of new lows. And finally, the NY Composite ($NYA) was above its 50-day moving average on Monday. It does not always lead to a market crack up but shows some of the instability in the air. As Art Cashin has been mentioning the Geopolitical Instability in a number of places in the world, seems to be completely discounted by the market. After topping in early April the SPX put in a low at the start of June, we have now spent 2 months up what appears to be an upward corrective channel. This has provided the Key Time aspect of letting the market get comfortable from a *psychological perspective with the potential risks*. And in a yield starved world.... what is there to do but to gravitate back to stocks especially if they are paying a 4% dividend yield. John