There is no change in the indicator summary. Stocks stalled this week, but held their gains and remain in uptrends overall. Breadth has started to wane as the NYSE AD Line failed to break above its November high. However, the other three breadth lines broke above their November highs (Nasdaq AD Line, Nasdaq AD Volume Line and NYSE AD Volume Line). While stocks remain overbought and sentiment is excessively bullish, there are simply no signs of weakness on the price charts. Please see the About Page for details on the commentaries and charts provided in Art's Charts.
- AD Lines: Bullish. The Nasdaq AD Line moved above its November high, but the NYSE AD Line remains below its November high and has yet to confirm.
- AD Volume Lines: Bullish. The Nasdaq and NYSE AD Volume Lines both exceeded their November highs and remain in uptrends.
- Net New Highs: Bullish. The Nasdaq and NYSE Cumulative Net New Highs lines remain in clear uptrends and above their 10-day EMAs.
- Bullish Percent Indices: Bullish. All Bullish Percent Indices are above 50%.
- VIX/VXN: Bullish. The S&P 500 Volatility Index ($VIX) and the Nasdaq 100 Volatility Index ($VXN) broke to new lows this month and remain in clear downtrends. Falling volatility means lower risk and this is positive for stocks.
- Trend Structure: Bullish. DIA, QQQQ, IWM, SPY, MDY moved above their November highs this month and are trading near their 52-week highs. Nothing but uptrend here.
- SPY Momentum: Bullish. MACD(5,35,5) remains in positive territory. RSI bounced off the 40-50 support zone and is back above 50. The Aroon Oscillator moved into negative territory in late November, but rebounded back above +50.
- Offensive Sector Performance: Bullish. Industrials are leading the charge and Finance surged in early December. Technology has been weak since early November though and consumer discretionary weakened in mid December. Offensive sector performance is still bullish overall though.
- Nasdaq Performance: Bullish. The $COMPQ:$NYA ratio moved to a new high in late November and remains in an uptrend.
- Small-cap Performance: Bullish. The $RUT:$OEX ratio also moved to a new high in early December and small-caps are showing relative strength.
- Breadth Charts (here) and Inter-market charts (here) have been updated
This table is designed to offer an objective look at current market conditions. It does not aim to pick tops or bottoms. Instead, it seeks to identify noticeable shifts in buying and selling pressure. With 10 indicator groups, the medium-term evidence is unlikely to change drastically overnight. Previous turns include: Positive on 11-Sept. Negative on 5-February. Positive on 5-March. Negative on 11-June. Positive on 18-June. Negative on 24-June. Positive on August 6. Negative on August 13. Positive on September 3.
