Saturday, January 12, 2013

Still Bullish

We are still bullish on the markets.  Below are just a few charts that support a bullish focus for stocks continuing to move higher.
The transportation index above is right at all time highs for this index fund. The chart is still not overbought on the RSI, giving more upside ahead.  The transportation index is seen as a leading economic indicator for moving goods from point A to point B.
The bullish percentage indicator above measures the number of stocks on a Point and Figure chart that are on a buy signal.  Clearly trending higher and above the moving averages.
The NYSE Summation Index is a breadth indicator that measures daily advances minus declines.  The index is trending strongly higher and above the moving average.

Bottom Line:  We have a higher trending market that has the look of moving higher in the coming weeks before hitting extreme overbought conditions. Thank you for reading.


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