Substantially Bearish

Posted by Don Vailoux - Timing the Market

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Technical Action on Wednesday and Yesterday


Technical action by S&P 500 stocks was substantially bearish on Wednesday and mixed yesterday. On Wednesday one S&P 500 stock broke resistance (Verizon) and 64 stocks broke support. The Up/Down ratio fell from 4.54 to (313/113=) 2.77. Yesterday, two S&P 500 stocks broke resistance (Care Fusion and O’Reilly Auto) and two stocks broke support (First Solar and Monster Worldwide). The Up/Down ratio slipped to (312/113=) 2.76.

Technical action by TSX Composite stocks also was substantially bearish on Wednesday and mixed on Thursday. No TSX stocks broke resistance on Wednesday and 22 stocks broke support. The Up/Down ratio plunged from 4.49 to (140/48=) 2.92. Yesterday, two TSX stocks broke resistance (Maple Leaf Foods and Dundee Bancorp) and one stock broke support (Husky Energy). The Up/Down ratio slipped to (140/49=) 2.86.

Weekly Bullish Percent Index Sector Review

All sector Bullish Percent indices fell last week. Seven more indices fell below their 15 day moving average from an intermediate overbought level and achieved the requirement for a Bullish Percent Index sell signal. Only the index for Consumer Staples remains above its 15 day moving average. All indices remain intermediate overbought and most have established a downtrend.

….go HERE to view the Bullish Percent Charts. Be sure to read the Great commentary and analysis by Hap Sneddon of Castlemoore that Don Vialoux has also posted. Its a 979 word article with charts on the strange situation in Canada today.  Canadians are scrambling to defend against the second wave of swine flu, but oblivious to the danger of the second wave of sell off in the stock market.  What makes human beings like this?  Discusses where the term ‘second wave’ comes from