Objective Trader

50 DMA

S&P500 Percentage of Stocks above 50 DMA is near the same buy zone we saw last October 2011

Breadth & Retracements - Long Entries -

Breadth Thrust has reached the discussed level of 30 being now oversold

NYHL has broken the zero line and that is a negative. That being said, every time that happens since November 2011, we saw a nice rally

NYSE Summation has still a sell signal but has reached now very oversold and it worth to prepare long entries , e.g. ETF Indices or selective stocks

NYSE Advance - Decline has reached oversold as well

 

Nasdaq 100 has reached the discussed retracement level ( see older articles ) and we should rally very soon and strong. The plan here is to enter long now with a position and add if we would see 50% retracement.  Or add when the next rally confirms the buy signal bearing in mind a position was already taken.

SPX has reached with low yesterday of 1324 the discussed retracement 1317-1324 ( 1321 fibo ). CCI made a higher low.

Market Breadth Approaching Intermediate Entry

The last time we saw Breadth Thrust Level 30, OT posted to be long and SPX rallied from 1359 retracement to over 1400. Since then we have seen a steady decline and we are approaching again 30 and might dip just below the most.  Once we hit those levels, it is time to load the boat (bearing always money management in sight). The risk of entry versus the rewards has best odds 

The last NYSE Summation I showed was market with the blue arrow and ? sign as the curve did not fit into a bullish picture. Soon after we got the sell signal and it has not changed BUT has reached very oversold. The prudent trader is waiting for a buy signal and the more risky trader can test the water upon reaching the retracement levels in indices ( see prior article of today )

NYSE Advance-Decline has reached very oversold again as well similar to last low when SPX traded 1359 and we rallied to over 1400.

Once the Dow Jones broke the 50 EMA a sell signal was triggered. Utility Sector is holding up well being a more defensive sector. That being said, the 12,250 area in Dow Jones serves as obvious support.

 

 

Retracement Levels almost reached

Looking at the Daily Charts, we have reached almost to perfection the estimated retracements. Some Indicators are showing positive divergence.

 

COMMODITIES WEEKLY and MONTHLY are very oversold !

SPX 1998 Comparison Part 2

Back in August - September 2011 we discussed at OT that the charts of 1998 looked similar and due to extreme panic levels in Percentage of Stocks above 50/200 DMA and NYSE New Highs - New Lows it was obvious to be very bullish (see archive Sep & Oct 2011 )

If we continue to look closer at the chart comparison below, we see that we should see another high this summer 2012, followed by a pullback with a rally leading into early 2013