- The GGT price index rose 0.67% on volume that was -4% below the 50d moving average. -4% is within the "noise" of the market, so this was a good day in terms of prices.
- The slopes of the pricing moving averages, which range from 5d in length to 65d, have now been positive for 4 consecutive days, with three of those days pointing upwards to "more positive" readings. This is net bullish on the market.
- The price change oscillator, which is a tool I use to determine overbought/oversold conditions, is unchanged at a value of 0. This indicates that there is equal probability of a move up, as well as a move down, from this point (same as yesterday by the way). Put another way, moving into stocks on the long side could have favorable risk/reward characteristics.
- The GGT database strength indicator, which is an oscillator that moves between 0 and 1 and indicates stock participation in terms of prices and volume, has just moved to +0.862 from 0.695. This is a large change for a single day and values above 0.8 are typically indicating overbought, so some caution at entering on the long side is advised.
- The Intermediate-termed Elder Force Index timer is still in mixed mode. Volume has not been high overall and as a volume-based timer, this one is not confirming the market in terms of price-volume. December 2010 showed us that we can move upwards a significant amount without volume, so this is a datapoint more than a driver.
- The slopes of the Long-Cash Ratio, which range from 5d in length to 65d, have now been positive for 2 consecutive days, with the last 5 consecutive days all pointing upward. This indicates that the underlying database is participating in terms of volume and price, compared to historical levels, and that we should be moving long into the market.