**This chart analysis is for educational purposes only, and should not
be construed as a recommendation to buy, sell or sell-short said securities**
There is no change in the indicator table. All indicators remain in bull mode as the market remains strong. The Nasdaq AD Line and AD Volume Line moved to new highs. Small-caps show relative strength as the $RUT:$OEX ratio surged to a new high. The finance sector remains a weak spot because XLF did not exceed its August high. Also note that the NYSE AD Line and NYSE Net New Highs are lagging a bit because of weakness in the finance sector.
- AD Lines: Bullish. The Nasdaq AD Line surged to a new high this month. The NYSE AD Line surged to its May-July highs this month, but has yet to exceed these highs.
- AD Volume Lines: Bullish. The Nasdaq AD Volume Line moved to a new high this week. The NYSE AD Volume Line hit a new high last week and remains in an uptrend overall.
- Net New Highs: Bullish. Net New Highs expanded this month and the cumulative Net New Highs lines for the Nasdaq and NYSE moved to new highs.
- Bullish Percent Indices: Bullish. All nine sector Bullish Percent Indices are above 50%.
- VIX/VXN: Bullish. The S&P 500 Volatility Index ($VIX) and the Nasdaq 100 Volatility Index ($VXN) fell back below 15% and remain at low levels overall.
- Trend-Structure: Bullish. DIA, IWM, QQQ, QQEW and SPY recorded new highs this month. MDY is still challenging its August high.
- SPY Momentum: Bullish. In the second week of September, RSI moved back above 60, MACD(5,35,5) turned positive and the Aroon Oscillator exceeded +50.
- Offensive Sector Performance: Bullish. XLI, XLK and XLY recorded new highs this month. XLF is lagging because it has yet to exceed its August high.
- Nasdaq Performance: Bullish. The $COMPQ:$NYA ratio moved to a new high this week as the Nasdaq outperforms the NY Composite.
- Small-cap Performance: Bullish. The $RUT:$OEX ratio surged to a new high last week and remains in an uptrend.
- Breadth charts (here) and intermarket 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.
This commentary and charts-of-interest are designed to stimulate thinking. This analysis is
not a recommendation to buy, sell, hold or sell short any security (stock ETF or otherwise).
We all need to think for ourselves when it comes to trading our own accounts. First, it is
the only way to really learn. Second, we are the only ones responsible for our decisions.
Think of these charts as food for further analysis. Before making a trade, it is important
to have a plan. Plan the trade and trade the plan. Among other things, this includes setting
a trigger level, a target area and a stop-loss level. It is also important to plan for three
possible price movements: advance, decline or sideways. Have a plan for all three scenarios
BEFORE making the trade. Consider possible holding times. And finally, look at overall market
conditions and sector/industry performance.
