I have been quiet mostly because the market has been quiet. The Market School Exposure count remains at +2. A further close in the negative direction however will bring an S5 sell signal (close below the 21-day). We are below the 21-day now but this test has a porosity allowance of 0.2% to help avoind whipsaws. Yesterday was a distribution day with the distribution count at +2 now. Some leaders are doing just okay. Nothing is working well however so I have remained on the sidelines in cash. Actions of leaders trump all other market reads. At the outset of this rally I checked my three favorite confirming indicators (Coppock, Eureka, IBD 6000 %E). The rally was not confirmed, a further caution on my part. I have attached here a short paper of the use of these follow-through day confirming indicators.
Use of underlying Market conditions as a means to estimate the probability of an IBD Follow.pdf
The market is in an uptrend but is definitely having trouble overcoming resistance. The action of Gold, US Dollar and US Bonds seem to indicate the market remains in a safe haven posture. Gold and silver have been interesting as they seem to be in a serious correction.
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Originally Posted by adam ali
