Is There A Doctor In The House? ~ The Risk Averse Alert

Tuesday, September 20, 2011

Is There A Doctor In The House?

One sick market for your consideration...


The NYSE Bullish Percent Index, right now, has recovered about half its loss from its July peak to its August bottom. Yet the NYSE Composite Index, right now, is nowhere near recovering similar ground...


At the start of September the NYSE Composite Index was close to recovering half of its July-August loss. However, right now it stands well shy of this mark.

Now, it's true, the market's sell-off over the first half of September left the NYSE Bullish Percent Index in a stronger position than at August bottom. So, last week's advance was not lacking a positive technical backdrop on this account.

Yet with the NYSE Composite Index lagging badly right now, and this despite considerable improvement in the underlying technical state of component issues, a red flag is raised suggesting a heightened urgency to sell dogs (today's lousy advance/decline ratio only more subtly bears this out). Not good when the "all is well" ruse run on NASDAQ finds an underlying technical state even more precarious than that on the NYSE...


A considerably smaller portion of NASDAQ-listed issues are supporting the NASDAQ Composite Index's advance off August bottom than is the case on the NYSE. Yet, just like off March '09 bottom, NASDAQ is made to shine brighter notwithstanding its razor thin leadership...


Suckers holding beloved tech darlings rather than taking a cue from the NYSE's lead and selling continue making for fine appearances, anyway. This might last another day or two. Then, judging by the overall fundamental and technical state of things, we could be on the fast path to chaos in no time at all.

Fast Money
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