The market is in a confirmed short term uptrend. Ditto breadth,
which looks even better because of a rotation back into mid and
smaller cap. stocks. Volume continues unimpressive. The bulls
are pushing the envelope in a tentative fashion. The SP 500 has
moved up this week from neutral to modestly overbought and
has yet to evidence the strong push on good volume that would
signify a new upleg as opposed to a bounceback rally from a nicely
The market has spent 2010 so far working off a massive longer term
overbought condition and this "work off" has proceeded far enough
where the odds of further consolidation have dropped from 90%
down to 50/50.
The market did correct earlier this year during the 13-15 week
cycle low and we are moving up out of that. The 80+ day daily
cycle I have been tracking is running out of time to see a low.
So, mixed bag here so far.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!