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Market Treading Water November 27, 2015

Posted by Tom in Thoughts.
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It’s good that this week was a shortened holiday week since the (US) markets did very little. We’re up toward the upper levels of this market and investors and traders alike are likely thinking about taking on any more risk.  Sentiment is positive, price trend is positive and it looks like money is slooowly flowing back into the market.

NASDAQ

One thing that does concern me is the weakness, or rather the lack of commitment in either direction, in the McClellan Summation Index.  In a nut shell, this is the summation (data added onto previous data) of advancing issues minus declining issues.  What typically happens is that the number of stocks advancing (over the # declining) will proceed a market advance; and visa versa.   Right now the market has advance back up to the previous high, but the Summation Index has not.  It’s just “neutral”, kind of like treading water right now.

Sectors like Japan, Semiconductors, US Dollar and Internet are doing at least ‘OK” for now.  Banks and Industrials are a bit behind, but there just doesn’t seem to be any catalyst to break into new high ground.  It sure feels like a market that is susceptible to a news item, and that’s a concern.

We’ll just have to see if anything develop next week when everyone returns.  If the market movers want to finish this year on new high ground they will start that move soon.  Have a good week.         ………  Tom  ………

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