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Pivital Point (?) March 11, 2017

Posted by Tom in Thoughts.
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Mar. 10, 2017 – This market could be at a pivotal point.  On the Bear side, we’ve seen the momentum in market leadership steadily fall for weeks now.  The momentum in the Advance / Decline line has dropped quite a bit.  Now, this does not mean the market “has to” fall or correct, but it is an indicator of slowing and shallow market leadership.  That typically means either a slight correct / pause in the up trend or a more significant correction.  Also, Small Cap stocks (considered to be higher risk) are not nearly as strong as the Large Cap stocks; agressive speculation drying up.

On the Bullish side, the VIX options index remains low (option traders are not concerned) and price support is holding up well.  The chart below shows this price support.  (click on graphic to enlarge it)

The Money Flow index (top window) is hovering around zero / neutral, so there is no significant selling pressure at this time.  Same goes for the Volume Flow.  My Sentiment indicators remain “Bullish”.  Until that purple lower trend gets broken on a Close and (more over) the 5748 support level gets taken out, I have to remain invested and long overall.

Price strength of the stocks in the broad S&P 1500 Index are pretty mixed, but tend to be much less strong compared to 2-3 weeks ago.

Accumulation & Distribution in those S&P 1500 stocks show a slowing down of buying (Accumulation) as well.

Here are the industry sectors that I’m trying to participate in for the time being.  This is where the strength is currently.

That’s it for the time being.  Take Care & Good Trading.      …….. Tom …….

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.

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