snippets - 9/10/09, page-62

The following suggest that at least a couple of days consolidation are imminent:

% of 50 Leaders above:
10SMA - 82% (overbought)
50SMA - 86% (overbought)
150SMA - 98% (Golly Gosh)

OK - so overbought can get more overbought.

Then add this to the pot.

Current 5SMA of % Advances/Declines = 61.4%.

The 5SMA of ADV/DECL% has been above 60% six times since mid-April.

Five of those six times the market declined soon after for at least a couple of days.

The odd one out was in Mid-July which precipitated the current rally. That occurred after a significant decline and was part of a 13-Day consecutive run-up in the A/D Line.

Given that the current figure is occurring at the top of a rally (as in all but one of the cases) - not the bottom - the probabilities lie with a retracement of at least short-term duration.

The June-July correction was precipitated by a 5DSMA % reading of 60.3%.

I'll leave those figures for you to think about.

By the way - I tried to add this to the Tuesday list for XJO - but that list is so congested it froze my computer. Could someone start a new one for Thursday?

Cheers
Red