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A Dull “Wait & See” Market February 24, 2018

Posted by Tom in Thoughts.
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Feb. 23, 2018 – Not much overall movement this week.  Take a quick look at the chart below and you’ll see we’re at the top of the Support (blue line) price that was established previous to the abrupt correction (a.k.a. “the VIX correction”).  That’s where the buyers last entered the market.  If there is to be a retest of the lows (6880 red line) it should come shortly.

This price structure is goofy, so I personally don’t think we will get any where near the previous lows.  I note that Money and Volume Flow indicators are slowly recovering and the Market Sentiment is now “Bullish”.  There was a lot of damage done in the first week of February and while prices have improved, we’re not seeing a rush of folks eager to get back into this market.  Not Out of the Woods yet.

The pie chart below of the number of stocks in the very broad S&P 1500 Index continues to improve, but note the large yellow area; a sign of neutrality in price movement.

I have taken a few small bites in the areas of Bio-Tech, Internet, Latin America and Emerging Market sectors.  I believe the watch word is to be patient and wait for more of an “all clear” sign.  BTW, my new Price Strength” indicator is mildly positive, but has NOT confirmed any all clear yet.  So we’re at the top end of previous price support and we need a sign of strength to break above that.  Without it I think we’ll just bounce around and consolidate for awhile.

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

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


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