The
S&P 500 index is now 8.5% above its 200-day moving average. That is an encouraging statistic because at
the 18 February Top it was 15.2% above the 200-dMA. So the 6% correction and the sideways action
since then have managed to reduce this previously disconcerting statistic to a
more manageable number - that should help us to go up from here.
There
is enough fear in the market that 2.4 billion dollars (net) have been pulled
from domestic, stock mutual-funds in the past 2-weeks.
Our indicators are looking up though.
SUMMARY
OF NTSM INDICATORS:
As
of today’s close, our 4-areas of market analysis present the following picture:
SENTIMENT: Neutral.
Sentiment is an elevated 55% Bulls.
It is high, but not a screaming sell yet. Since the NTSM system requires multiple
indicators to agree before we get a sell signal, high sentiment alone will not
put us in a sell mode.
PRICE:
Buy. Price action has been more to the upside (even in the down trend).
VOLUME:
Neutral. Volume has been more down than up.
No surprise there. This is a
momentum indicator and downward moves in the market are going to send this
indicator in a negative direction. It
has not, however, fallen far enough in the red to indicate a sell.
NTSM
turned to BUY today and I think we look pretty good, baring unforeseeable
issues. The clowns in Washington could derail
everything in a heartbeat if they continue to play games with the debt ceiling.
The
Navigate the Stock Market analysis switched to BUY on 20 April and it is BUY today
