TODAY the Market drifted further toward Basing EQ as SO in Utilities dropped in our indicator and caused another slight tick down in the overall average of the components of the three DJ indices (DJ 30, 20 & 15 = DJ65). The significance of today’s slight down tick in the overall average is that the fractional value of today’s reading created the possibility of rounding the whole value downward further to the lowest Support reading for our indicator. IN OTHER WORDS, the market (in DJ65 terms) is now BARELY SUPPORTIVE as a whole, ALTHOUGH Transports are still tenaciously holding onto their fairly-strong Supportive indication (!!!). So then, today was a significant move down in technical value for the overall market. This implies that the short-term downward momentum is threatening to further reduce the Supportive thrust of the last year.
We may be in for a long summer of drift as the market seeks a true Price-Related Bottom.
Disclosure: No current positions.