WALL STREET CRAPS MARKET OBSERVATIONS FOR FEBRUARY 25, 2013
February 24th, 2013
MARKET OBSERVATIONS FOR FEBRUARY 25, 2013: The stock market hit a new high last Tuesday before embarking on a sharp decline. Friday’s advance recovered most of the previous two-day decline. The market is in the unique position to either test last Tuesday high or test last Thursday low. Don’t be surprised if the market follows a common pattern of heading down towards the end of the month (and rallying in the beginning).
Key market indicators show the following:
- Summation Index – has been in a month-long consolidation pattern & broke to the downside during last week
- Investor Sentiment – is short-term neutral & long-term slightly negative
- Fear & Greed Index – is at 76 which is in “Extreme Greed” territory but has more room to the upside
- NYSE Breadth Oscillator – Ultimate Indicator reading of 41, not far from a buy signal
- Nasdaq Breadth Oscillator – Ultimate Indicator reading of 40, not far from a buy signal
- Risk On/Risk Off Indicator -Ultimate Indicator reading of 53 which is neutral
With many key breadth indicators near buy signal levels, I would welcome a return to last Thursday’s low with a chance to go long towards an intermediate top in March.
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