jump to navigation

The March Higher Continues, but Slower February 28, 2015

Posted by Tom in Thoughts.
trackback

Once again this blog posting falls on top of my monthly newsletter (posted under that tab herein), so the Top Sectors and Market Strength pie charts can be found there.  Just click on that tab (above) and download the newsletter in Adobe (PDF) format.

On a more technical side: I see this market advance slowing, and that’s OK.  Note in the chart below how the price bar spreads (between top and bottom) are getting smaller; indicating that supply and demand are getting more balanced.  The daily advances this week were fewer and smaller.  Buyers are getting “filled up”, and once that demand is filled and there are fewer buyers . . the market is much more susceptible to selling pressures.

NASDAQ blog

We also see this is the “money flow” histogram at the top of the chart; just less demand.  As this continues it could be a consolidation pattern where prices just go sideways for awhile, looking for a new reason or catalyst to resume buying.  Or, a chunk of bad news happens and we correct down.  Right now, no one really can tell.  In any case let’s be ready for whatever happens without get to anxious about it.  After all, this is “normal” price action.

Market sentiment remains positive for now.

Some of the leaders are showing signs of moderation / slowing.  They include Biotech and select Tech stocks (semiconductors), but International stocks are showing sighs of new strength (Japan, Europe and perhaps Latin America).  Be on the lookout.

Until next week.                …………….  Tom  ………………

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: