aj, note an interesting phenomenon, in the last three days, despite the poor performance of the market, the NYSE new lows have stopped expanding, two days ago, 117, yesterday 75 and today 47, that tells me that this decline is not gathering momentum (there very little expansion in new lows on the naz either). The tepid rate of new highs, and its actual sharp decline indicate weakening leadership. This together with other "internals" parameters might support the thesis advanced some three weeks ago that for few weeks (we are already well in week number 3) we will be meandering in the 1625/1725 range. Since that post, the Naz actually breached the upper boundary by a good 30 points, so I am not surprised that the depth of the decline was stopped (so far) about 23 Naz points above that original target. Whether or not the next counter move up leads to new highs will rapidly be evident by the behavior of new highs and new lows and few other indicators as we approach 1700 (give or take about 15 points). Very short term, I still have that bounce we discussed.
