Bulls are feeling pretty comfortable right now. The market is traveling steadily upward, support is holding and, "April highs, here we come!" Technicals still are confirming this.
The 10-minute bar chart looks good today. Prices steadily climbed mimicking the daily chart's continued steep and seemingly unstoppable ascendancy.
The daily SPX chart is still very bullish. The market remains inside the steep positive trend channel and comfortably above support.
UP participation expanded the last two trading days, but it has been fading since the rally began.
The McClellan Oscillator continues to fuel the rise of the Summation Index as its readings begin to separate positively.
Now.... wait for it....
BUT...
if you want to dig around for something that could be considered slightly worrisome, the place to look is in the comparison of the breadth and volume indicators.
The ITBM/ITVM chart shows a tale of two indicators. The ITBM over the past week or so has been rising steadily without any hesitation; whereas, the ITVM has been more choppy, not rising as easily as the ITBM.
The 3-year Advance/Decline Lines chart gives us the big picture. In the chart below you can see the A/D Line has moved higher quickly and in tune with the market. The A/D Volume Line? Not so much.
Bottom Line: The market continues to rise and seems to remain effortlessly above support. Price and breadth based indicators continue to look very positive without being overbought. For those who need something to worry about, the volume based indicators are not looking as strong as they could. They aren't negative per se because they are rising and staying out of overbought territory like their partners; but, they aren't showing the kind of strength you would like to see in conjunction with this powerful Autumn rally.
CORRECTION FROM CARL: In Friday’s comments I erroneously attributed the creation of the Bullish Percent Index (BPI) to Thomas Dorsey. The NYSE BPI was actually created in 1955 by the late Abe Cohen, the first editor of Chartcraft/Investors Intelligence. Can you imagine manually updating and analyzing all those charts? Makes my head hurt.
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MUST READ: You can’t miss reading John Mauldin’s Thoughts from the Frontline for October 15, 2010. John is usually the eternal optimist, but he is really shaken by the latest revelations in the sub-prime/housing/foreclosure mess. This article clearly states the problem.
https://www.frontlinethoughts.com/gateway.asp
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SIGNALS: Here we include a picture of the current day's signal table to provide a kind of archive that can be referenced in the future. To access the current table with active links see the Decision Point Alert Daily Report.)
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Technical analysis is a windsock, not a crystal ball.
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Decision Point's Timer Digest Rankings
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Erin Swenlin Heim is the daughter of Carl Swenlin, the president and founder of DecisionPoint.com. Erin holds a Bachelor’s degree in Mathematics from the University of Southern California and is a graduate of the Air Force Institute of Technology where she earned a Masters degree in Information Resource Management. Erin began working in Decision Point around 1997, starting with billing and customer service and expanding into processing daily website updates. She is engaged in a continuing apprenticeship to Carl, who is helping her build a solid foundation in the Decision Point method of technical analysis.
