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More Movement & Some Weakness August 26, 2016

Posted by Tom in Thoughts.
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Aug. 26, 2016 – Well at least we got some movement (though not much) this week.  I read that the last month the S&P 500 Index has been in the tightest range it has ever been for over two decades.  Those narrow bars that go horizontal tell the story.  (click to enlarge charts)

NASDAQ

It’s not time to bail out just yet, but there is a small amount of weakness beginning to creep into the market.  Maybe it’s just the trailing days of summer and a lack of participation in the market but “Volume Flow” and “Money Flow”have fallen off (chart above).  There is a support level near 5165 just below current prices so that may hold until Labor Day passes.  There just doesn’t seem to be any commitment to either buy or sell right now.  Looking for direction?  Sure looks like it.  With earnings season behind us the primary mover is likely to be a news event, the a FED announcement, etc.

Here are the sectors of stocks that I consider strong now:

Top Sectors

They’re pretty much the same as the last 3-4 weeks, and they appear to be trending nicely.

The overall market (as measured by the broad S&P 1500 Index) is fairly well balanced between the number of stocks in Accumulation (buying) and Distribution (selling) / Neutral.  So for the time being that’s healthy.

S&P 1500 A-D

This market just appears to be waiting for some catalyst to move it in either direction, and it probably won’t take much to move it, then everyone will pile on.  Right now I’m invested with some Cash, but just a little bit concerned.

Have a good week.       ………………  Tom  …………….

price chart by MetaStock; pie charts by http://www.HighGrowthStock.com. Used with permission.

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