Sunday, February 05, 2006 11:35:32 AM
Weekly Breadth Charts.
I don't think I have ever posted a breadth chart based on weekly data, but here is one. From these charts, I say the longer term trend should be down, mostly due to alot of negative divergence between price and indicators.
- Prices have been making higher highs, with what appears to be less and less breadth behind it.
- Weekly NDX SI is showing some negative divergence since early 2005.
- Weekly NDX Osc has been showing negative divergence since early Dec.
- The MACD breadth has mostly been flat, near the 50 line.
To be bullish in this time frame, there need to be an improvement in both the SI and the Osc; perhaps a break in the descending trendline on the Osc. Also, an improvement in the MACD breadth, by having the red line cross above the blue line.
I don't think I have ever posted a breadth chart based on weekly data, but here is one. From these charts, I say the longer term trend should be down, mostly due to alot of negative divergence between price and indicators.
- Prices have been making higher highs, with what appears to be less and less breadth behind it.
- Weekly NDX SI is showing some negative divergence since early 2005.
- Weekly NDX Osc has been showing negative divergence since early Dec.
- The MACD breadth has mostly been flat, near the 50 line.
To be bullish in this time frame, there need to be an improvement in both the SI and the Osc; perhaps a break in the descending trendline on the Osc. Also, an improvement in the MACD breadth, by having the red line cross above the blue line.
Jared
jjames10@nc.rr.com
"Don't Panic!"
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