Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
After that hectic rally off the late June lows, conditions have been very choppy since mid July. What appeared to be a clean breakout late last week now is a bit more questionable. That said every time we have “questionable” come up in the QE market, we seem to rally so something to bear in mind. Except for those few days of breakout the S&P 500 has essentially been range bound during this time frame. We are getting a lot of flip flopping with the MACD indicator as well. Certainly no major red flags here – thus far just a pullback to the 10 day moving average with the 20 day quickly coming up as support. Breaking out of the bottom of this yellow shaded area would put the advantage to bears, while a recapture of the breakout should bode positive for bulls.
Finally with the NYSE McClellan Oscillator one wants this to stay in the green (although not to extremes) to showcase good breadth. This has not happened of late either. In fact we registered a -40 reading yesterday. But more broadly speaking we have not seen this go back to green during this latest leg.
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