ajtj99's Market Pulse

[Justa Werkenstiff]

Market: Realignment day. I indicated the other day that the Sox and, to a lesser extent, the NDX were near buys but the other averages were not. This is a divergence usually that must be rectified (all averages - Dow is an exception- normally trade with indicators in the same range) the and yesterday it corrected upward with the NDX and SOX playing catch-up. Now all the averages are lined up signal-wise and the market can trade as a market as opposed to some post opex enigma.

But the sentiment issue again made its presence known and closes at the most extreme levels since June 10th last night. If the trend is your friend, these indicators should cap the market yet again and continue a rollover.

Yesterday, in my thinking, the daily price trend on the Dow and SPX and WLSH turned DOWN finally to join the other averages. Read that last sentence again. The daily trend has been up since May 19th. Read that last sentence again. So while yesterday appeared bullish to some, it was confirmation to me that we are in a corrective process. My short term sentiment measures confirm this daily price trend change as they closed at extreme levels.

Longer term sentiment measures have yet to turn up to confirm a pessimisim cycle but are poised to do so any day.