The current Zweig for the NYSE is making a remarkable comeback, indicating a market that is winding up to propel us to the next heights in this bull run.
Last week we were flirting with the oversold line, know we are approaching overbought. The last little run up to 55.50 is actually three days of movements, so there is some momentum loss. I don’t only look at the NYSE using this indicator, I also watch several other A/D’s. (ALL US, All Nasdaq listed, S&P500, DJIA, Russel 2000, Nasdaq 100). Today’s close has some divergences that I usually don’t see amongst the indicators. That was obvious following the A/D lines today. In fact only the NYSE and DOW-30 and SP500 showed a higher close on the Zweig indicators today. The others closed slightly lower than yesterday.
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Here we have four different data sources. The SP500, like the NYSE, shows an uptick in the A/D today, while the NAZ-100 is slightly down, as well as the R2000 in the last graph. The broadest of all the graphs, the bottom left, represents all listed US stocks. This indicator also indicates a slightly down A/D line today. Today’s market was a tale of two cities. Is the Dow and SPX catching up to the Nasdaq, or is the Nasdaq loosing momentum?
Check back tomorrow for the answer.
Happy Trading
-RLT
