To: Lucretius who wrote (33289 ) 4/13/1999 11:44:00 PM From: John Pitera Read Replies (2) | Respond to
Luc, get with the program this is a hyper bullish mania, with the breadth starting to pick up and more groups starting to lead, I can believe we go higher ......only a decisive down day tomorrow will we believe we have given the market as much leeway as we can. If it does not start down from this price area and time area, then we will have to withdraw our artillery and regroup. We feel compelled to inform you that, although we are in a position to say we cannot tell you exactly what it means, we have once again seen a new all time high close on the Dow accompanied by a negative 18 day and 21 day advance-decline oscillator. It is quite rare to see this happen even once within any give time period, and it is generally quite bearish. We have now seen the Dow go to eleven new all time high closes since March 5, just over five weeks ago. Every single one of those eleven new all time high closes was accompanied by a negative 18 day or 21 day advance-decline oscillator. The only exception for the 18 day was on March 29 when it went positive at +0.8 and on March 18, the 21 day went positive at +6.0. On each of those days, however, the other oscillator was negative, so for all those closes in new all time high territory on the Dow, all eleven of them, the advance-decline oscillators were negative, completely unprecedented in the history of the market. Also remember while all this has been happening, the McClellan Summation Index hadn't been in negative territory. It is enough to boggle the mind of anyone who has done serious technical research in the past. Despite the almost legendary number of technical negatives, however, we must take note that for three consecutive days now there have been more new highs than new lows, and the breadth has actually been positive for four consecutive days for the first time this year. In fact, until yesterday, there had not been three consecutive positive breadth days since January 6. Does this mean that breadth is about to pull the secondaries out of their depression? It is quite unlikely here, we believe, but it bears watching.
