We still think there is an upside rip left here, but breadth is starting to look on edge. Yesterday’s lack of movement has left the charts boring.
The Zweig index looks decent with a nice move-up yesterday over the 50 percent line. We’re watching for a Zweig follow-through today.
The CVI has us a little bit nervous for the bulls. If it wasn’t for those strong NH/NL charts, we would be sounding a warning bell for a dive.
The 40 DPI has the same feel:
NH/NLs remain nothing short of amazing. They continue in the trending mode, an upside trending mode that is. Look at the NH/NLs (# of stocks making 52 week New Highs and New Lows) like you look at ticks if you trade with us live. They are telling us there is a buying accumulation continuing.
Our trenders remain split. We continue to watch that 15DMA getting close on the Cum NH/NL index.