Wednesday Outlook: Short-Term Oversold, Long-Term Overbought

June 16, 2009

Bulls got some early cheer from homebuilders but that quickly faded with a (ahem) worse than expected decline in industrial production.

Bulls need a catalyst and a stronger flow of funds to markets. Now it seems many are either just bored with conditions or lack motivation born by an inflow of fresh funds.

Volume remains as light as a slow day in mid-August. Breadth was negative and we’re now short-term oversold while long-term overbought.








The Summation Index is turning over now in a more pronounced way than previously.



































































As for Transports, the following chart should give you the proper sense of things via the American Trucking Association.

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