Alphabet Inc (GOOG)

[JJ8]

"Last's week's early market rally seemingly disavowed all the bad news; which is of course what this market has been doing since the summer. However, we may be premature - but we are certain the market is changing its stripes from focusing upon "benefits" and tail-wind of QE-3; and focusing more upon the poor earnings and revenue reports coming out of corporate America. Quite simply, the European and Chinese slowdowns were bound to have an impact upon US stock prices; it was only a question of "when" within the context of an increase in monetary liquidity. Note the Google (GOOG) debacle this week; note the poorly received Microsoft (MSFT) figures - and one gets the sense that Technology in general has already made its bull market highs and lower lows lie ahead." R.Rhodes

An update of my LMP Indicator shows 2 more breakdowns occurred on Oct. 19th thus increasing the breakdowns since Oct. 8, 2012 Hence, the larger market picture has been gradually going more negative since then.

The above observation is in harmony with Carl Swenlin's "an early warning of possible problems ahead" stated in the quote below.

On Oct. 12, 2012 Carl Swenlin of Decision Point wrote:

"This week our Percent Buy Index (PBI) for the S&P 500 dropped below its 32-EMA and generated a sell signal. The PBI tracks the percentage of stocks in a given index that are on intermediate-term buy signals, and it is one of many indicators that we follow. The PBI does not currently affect our primary timing model (which is still on a buy signal), but it does offer an early warning of possible problems ahead."

"The chart show(ing) the SPX PBI over a three-year period with crossover signals... are not infallible, but downside crossovers at overbought levels are generally bad news. Additionally, the negative divergence -- lower PBI tops against higher price tops."

The market can do anything.

GLTA