A Levitation For The Ages Nears Its End ~ The Risk Averse Alert

Wednesday, April 28, 2010

A Levitation For The Ages Nears Its End


Behold technical deterioration typical of a five-wave move nearing its end...


$NYA

In contrast to coincident relative strength during formation of the second wave of five waves up from early-February relative strength presently is weakening (as is typical) while the fourth wave of these five waves up unfolds.

With both RSI and MACD — although fading, yes — remaining on the buy side of their respective ranges ... further support is given to the probability that, the market's death defying levitation over the past many, many months has some days and weeks yet to go before the big, bad bear born in 2007 finally awakens.


NYSE McClellan

Still more evidence of technical deterioration typical of a five-wave move nearing its end (in this case five waves up from March '09 bottom, as well as five waves since early-February) ... this seen via the NYSE's McClellan Oscillator and Summation Index.

Here again, though, are measures decidedly on the buy side of their respective ranges also bolstering the likelihood the market could remain levitated for some time before top, at last, is reached.

Yet given such weakness as the Oscillator has revealed over the past month, might top already be in? Should major indexes decisively break below their respective 50-day moving averages, then this likelihood surely would increase...


Fast Money
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