This is the rally attempt we have been waiting for. Now as we approach back to the highs and set up these price/index divergences ( that is to say we are making price levels on weaker breadth), the question is, is that weakness or is that reserved news to take us even higher? The NH/NLs are the key here, they can’t show a divergence.
Our Zweig has a nice double bounce, now it needs to get above the 60 area to convince us that more upside is coming.
The CVI is running just a little behind right now:
The 40 DPI is making a nice recovery. That, too, has to be into the 70s and then 80s:
Our NH/NLs are back in the 90s:
For the Trenders, they have both left the bear’s camp and gone neutral. We are not sure that a return to the den isn’t in the works.