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Market Recovers but Uneasy September 23, 2016

Posted by Tom in Thoughts.
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Sept. 23, 2016 – This week the market continued to recover from it’s sharp sell off but looking at the price action on Thursday & Friday I see very narrow range bars.  The market is not finding it easy to move much in either direction.  We’ve gone through the Bank of Japan and the FED announcements this week (both stayed the course, no changes), and now the market appears to be looking for a reason or motivation to move.  Monday will be the presidential debate so that may be why we’re in a state of “uneasy wait”.  Noting that volume is about average and market sentiment is neutral.

nasdaq

I’ve drawn a very tight trend channel to give us a quick “heads up” when we break the current trend.  It’s been a sharp recovery.  I’m watch for signs of an Up Thrust or a continuance of Accumulation (re-accumulation).  The 5108 level remains an important level in my mind.

Looking at the broader market, using the S&P 1500 stocks in that index as a barometer for the pie charts below:

Price Strength (% of stocks) – –

sp1500-price-strengthAccumulation / Distribution (% of stocks) – –

sp1500-a-d

There doesn’t seem to be an overwhelming imbalance in either (buying or selling) direction.  Back to the “uneasy waiting” mode idea.  The number of stocks (in sectors) that are potential buying candidates has dried up over the last 2 days.  Biotech and Semiconductors were strong but now Consumer Discretionary is replacing them.  Kind of strange IMHO.

top-sectors

That’s about it for now.  I’m looking for a break either way before I put more money to work.  Have a good week.  …. Tom  ….

price chart by MetaStock; others by http://www.HighGrowthStock.com; used with permission.

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