Market Internals Update 2011-05-22

Someone asked for an update so here it is.

Take a look at the S&P500 Daily Breadth Monitor chart on front page after you read my comments here will help you understand what I see from the chart.

I get these from the chart,

1. Oversold in TICK16 Short Term.
2. Topping action in 3-Day Advance Issues
3. TICK16 Long Term dipped into bearish territory.

What does that mean?

a. Immediate projection from #2 points to a flush as TICK16 ST has not turned from pointing downward yet.

b. Then a bounce because TICK16 ST is very oversold from #1.

c. If that swing up from b failed to take TICK16 LT back above neutral, we are officially in a major downtrend then.

Simple enough? or too complex to understand?

Drop me a line here. I will explain further what it all means if you post your questions in the comment area below.

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